Monday, June 16, 2008

Finishing the financials trade

I bought some more financials today, picking up some call options in Citigroup (calls 3.1% of portfolio). This complements the JPMorgan Chase (calls 4.5% of portfolio) calls I picked up on Friday, which already show a nice profit. Although Citigroup is very troubled, it seems as though most of their problems are priced in the stock already. So I purchased some calls on speculation that the $20 level will be the near-term low, and that we have bounced off that level (and will stay above it) for a while. These two purchases are all I'm willing to commit to financials for now.