I'm not smart enough to understand what you just said. Can someone explain the quoted post? Thanks! -Melissa
Look at the price of the BAC FEB 20, 2009 10 strike call. That thing should be no bid by three cents. Instead, as I write this, it is .14 x .16. These stocks are all emotion. The option market is telling you that.
right, pure emotion/rumours... right now the squeeze goes on as the overall market's heading higher. if there's some positive news (TARP related) coming out, it could skyrocket.
Oy, I just realized that if you did not understand what I wrote before (and that is being kind to myself because I may have assumed too much and noone would understand it) you probably don't understand what I mean here either. What I am saying is the options markets are giving a non-zero probability of the stock getting taken over, by action in waaay out the money calls in the front month. MMs are forced to raise their vol on these calls. Greed and Fear intense, both present at once.
Dodd said today that wasn't going to happen. He laughed when the reporter asked about BAC getting nationalized.