Friday, February 20, 2009

the SHORT History of The United States! ~ Wells Fargo & Company (NYSE:WFC) & Bank of America Corporation (NYSE:BAC)

Our FRIDAY focus was on $WFC & $BAC  ... coming into this historic trading day we "owned" WFCOB the March 10 puts.  ... selling FAZ Thursday and adding WFC puts turned out to be a blessing, but never thought we'd actually SELL those March 10s in-the-money!!??!  

 How often do the BIGGEST BANKS in the (short) HISTORY of The UNITED STATES of AMERICA trade down 30%+ ??! ... Bank of America hit $2.53!!  Wells Fargo hit $8.81!!  ... only to end the day down 3% and 9% respectively.  

NATIONALIZATION + OPTIONS EXPIRATION = OPPORTUNITY!!! 

   EMOTION is the GREATEST.   Many traders say to take emotion out of the game,  but our faithful readers know we are obnoxious, intense, and best of all ... EMOTIONAL. 

How did you "feel" with WFC down 15% hitting new lows???  The banking system is done. right? ... and then how about down 30%+ !!??? ... the world is really over, holy shit! ... still holding some WFCOB  ... the words "I AM THE GREATEST!!!!" kept flashing across the insides of my eyeballs.  When we "feeeeel" that good, it's a sure tell.  TIME to SELL!!!! 

SOLD OUT:  WFCOB ... we took 1/2 off in the morning ($1.90) and the other 1/2 near HOD!  ($3.10)  ... basically taking profits with WFC down 15%ish and 30%ish ... using the common stock as our indicator.  RECIPE for SUCCESS! 


VOTE NO!  ... with Friday being FEBRUARY OPTIONS EXPIRATION, we had to take final profits in our Exxon (XOM) *puts  (XOMNO) , from XOM $80+ to $70.61 ... a sad day for one of our BEST trades of ohhh 9 ... original purchase .73cents , sold final leftovers north of $4.  the new OIL short is $RIG above $60.  *MARCH 55 PUTS* 

WINNER:  $BA is fatty.  *short* from $44  ... consistency pays 20%+!! (stop hit @ $36) 

EXPIRED WORTHLESS:   MSFT the floating fatty. we couldn't sink billy. (not this month) ... the BIGGEST LOSER!!!  

BUY OF THE DAY. (BOTD) 

The MARCH $4 CALLS. 

the BAC "calls of confidence" (part 4)

.... if the banks can rally Monday, resulting in some soft of laughable temporary "double-bottom" ... this could get real profitable, stay tuned.  

BANK-of-NOTE:  watch $C and the $2 level.  friday it was a great indicator on the strength of the rally. (daily low of $1.61)  After Hours: 2.20 +0.25 (12.82%)  Feb 20 8:00pm ET

HOT RECO:  *short* $AMP from $16.50 ... a "friend" of BOTD called friday to say, ... "there's trouble at Ameriprise Financial."  (stock tips from random "friends" usually don't work, not sure why we think this one might be different) 

p.s. Team BOTD knows.
 71.8% of "us" got it right. hmm, who are the 28.2% non-believers?


Get SHORT, stay SHORT. 

11 comments:

BUY ON THE DIP said...

on a side note, we are glad the "palindrome" bottom lasted only a few minutes. saying and writing the word "palindrome" was getting old.

Anonymous said...

I fu#*ed up and bought skf march call at 11.00 and now its worth 5.40. lost my ass. should I hold or sell first thing monday> should I buy some skf puts.?

BUY ON THE DIP said...

what strike?

The Conqueror said...

BOTD, you always have brilliance ideas

Now, I'm starting to enter DF put, wish me luck!

Anonymous said...

what do you guys think of the gov investing up to 40% into them. What will that hold for the markets monday?

BUY ON THE DIP said...

watching $KBH calls in the AM. (potential BUY "if" we rally) http://finance.yahoo.com/q?s=KBHCB.X *unusual options activity scan*

..... and might add some PDE to hedge RIG puts. if.

OE Trader said...

Nice way to trade expiration day! Keep it up. -OE

Kidd Jones said...

going with the BOTD theme and shorting everything... that counts gold

DGZ

Kidd Jones said...

looks like a FAS ride today boys

Anonymous said...

Dow at 5000-6000? what research is that based on? That's a very low range to speculate.

BUY ON THE DIP said...

"short something" list:

PNRA 45.67 -0.61 (-1.32%)
BBBY 20.61 -0.50 (-2.37%)
BBY 27.58 -0.32 (-1.15%)
TSN 7.61 -0.14 (-1.81%)
DF 19.41 -0.44 (-2.22%)
AMP 15.99 -1.16 (-6.76%)
RIG 55.46 -4.06 (-6.82%) *WINNER!
GS 80.07 -4.52 (-5.34%)*WINNER!
NEM 42.39 -1.34 (-3.06%)
etc...

X 21.53 -3.27 (-13.19%)
*new low, wish we still had some puts.

"Get SHORT, stay SHORT!"

on the LONG side: IYR calls, ouch.