Chart of the Day Special Alert: Make 654% as financial stocks crash
Written by Adam Lass, WaveStrength Options Weekly
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!
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:
