Popular press reported Bear Stearns officials bought puts before the $2.00 offer was revealed. I haven't seen anything where Bear Stearns execs got in trouble for this. It seems LEH officials could short their own stock.
new intraday lows, this is getting serious, feels a little like March 17th. And how many thought the market was going to reach new highs and that all these credit problems were done with...this is going to be a very volatile ride.
they should just have the ceo come out a speak or even halt the stock, if there is another problem like what happened to BSC the dow is going to drop 10%....too many rumors.....
still could be a long way down. it hit 20 on March 17. besides high volume, are there any other tell-tale signs of a capitulation bottom?
Lets say you were a Bear Stearns official, or even a clearical secretary, and you got wind that the stock was going to $2. Wouldnt you try to enlist the aid of a close friend to buy those puts or to short the stock? If I was a Bear Stearns executive, I would enlist the aid of a close friend that is not related to my family and then go in on the trade with them. This is how Jim Cramer does it so why should Bear Stearns be any different?