E TRADE Financial Corp (ETFC)

[Franickman]

I sold my Nov strike 15 Calls yesterday at the pop. Made a nice profit. This is just the same old news bout a rumor buyout! It wont happen for another 6 months at least. E*Trade is still a risky company and any broker wanting to buy it out knows it. The Charles Schwab Corporation (NYSE: SCHW) is the last broker I would ever suspect of buying out E*trade.

Also, IMO... once a bidding war has started and an offer comes out, buy that strike price in options because that offer will probably double. You have to remember that E*trade did a 10-1 stock split so really Charles would be offering only $2.20 per share if E*trade did not do a reverse stock split. Its high before that was more than 26 dollars a share. My guess is that E*trade would accept an offer higher than $30 dollars once a bid for the company comes out.

This post is only my opinion and is pure speculation, Please seek advise from your own financial advisor.