The Dean’s Trades: SKF Call Spreads

September 17th, 2008 at 11:15 am Posted by The Dean

Wow, was the Dean ever right yesterday with his instinct that financials had lower to go.

The Fed intervened to stop the collapse of AIG, by lending money at an excruciating (for the shareholders) LIBOR+850 interest rate

If you have a long SKF call spread on like the Dean does, you are sitting pretty today. I am not dumping these calls yet – maybe tomorrow. I did sell the 100 shares of SKF that I bought at 130 and change yesterday. If you are in September financials puts, now is the time to sell them.

Look at the TED spread, hich I discussed in Monday’s post. It has screamed up to a new high, indicating severe distress in the financial sector.

Happy Trading, The Dean

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