Lose Another 70% on Financial Stocks... or Make 654% as They Crash! It's Your Shot to Call.
For the past few months, I have warned you not to believe U.S. banks when they claim that relief is just around the corner. These guys still have plenty of skeletons left in their closets and plenty of room left to fall.
Last week, we heard from the IMF that the sector still has billions -- if not trillions -- left to lose! In the past few days, two of the largest players, Citigroup (C: NYSE) and Merrill Lynch (MER: NYSE) , confessed to yet another $15 billion in write-downs.
So how far can these deadbeats fall? There are all sorts of value (value destruction?) formulas that can be applied to these former rock stars. But the simplest method is to use the previous crash as a model.
When investors discovered that tech stocks were blowing smoke and concealing huge losses, they punished the sector with 80% losses. So far, the financials -- with losses that dwarf tech's -- have only lost some 15%. Looks like a long way down to me.
Tired of throwing money into these sinkholes? Buy puts instead! WaveStrength Options Weekly readers have been positioned for gains of 654% with this strategy , and the party is just getting started!
Adam Lass
Senior Editor, WaveStrength Options Weekly
P.S. Still not convinced that you could make money off this strategy? Well, just look at the recent gains WaveStrength Options Weekly readers have seen... all from recent puts:
- 190% off Bank of America
- 158% with puts on Safeway
- 307% on Kohls
I'm working on the next strategy for my readers. (In fact, I'm working on my 100th alert for my readers right now!) It's your turn to get in on these potential triple-digit gains too .
