Large Bearish Bets Weigh Down Lehman Bros
rumors that the fourth largest U.S. investment bank...
could see a run on the bank similar to what happened to Bear Stearns, have dropped the stock a 4th straight day and as much as 10% intraday.
The number of options traded that give the right to sell Lehman shares, called puts, exceeded calls by almost 4-to-1.
Implied volatility, the key gauge of options prices, jumped to 102.84 from 88.22 yesterday.
Refuting the alligators... Lehman said on March 18 that its holding company has $34 billion of assets it could easily sell,
and another $64 billion of assets it could borrow against. Regulated subsidiaries have another $99 billion of assets it could borrow against.
Lehman's statement: "There are a lot of rumors in the marketplace that are totally unfounded.
We are suspicious that the rumors are being promulgated by short sellers of our stock that have an economic self interest."
The Nattering One muses... sounds a bit Bear Stearnish to me, perhaps by next week the Fed will be bailing out Lehman as well.
I wonder who they will lend $30 billion to, in order to buy Lehman? Where do I sign up? Bennie, can I take a number now? Please?
could see a run on the bank similar to what happened to Bear Stearns, have dropped the stock a 4th straight day and as much as 10% intraday.
The number of options traded that give the right to sell Lehman shares, called puts, exceeded calls by almost 4-to-1.
Implied volatility, the key gauge of options prices, jumped to 102.84 from 88.22 yesterday.
Refuting the alligators... Lehman said on March 18 that its holding company has $34 billion of assets it could easily sell,
and another $64 billion of assets it could borrow against. Regulated subsidiaries have another $99 billion of assets it could borrow against.
Lehman's statement: "There are a lot of rumors in the marketplace that are totally unfounded.
We are suspicious that the rumors are being promulgated by short sellers of our stock that have an economic self interest."
The Nattering One muses... sounds a bit Bear Stearnish to me, perhaps by next week the Fed will be bailing out Lehman as well.
I wonder who they will lend $30 billion to, in order to buy Lehman? Where do I sign up? Bennie, can I take a number now? Please?
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