Comments on: A Technical Look at the Washington Mutual Brankruptcy

By: Blain Reinkensmeyer

Blain Reinkensmeyer — Tue, 21 Oct 2008 04:01:24 +0000

absolutely no idea, your guess is as good as mine!

By: RR

RR — Fri, 17 Oct 2008 23:56:50 +0000

So I bought a couple of stock from WAMU at pennies. Do you think it has any chance of going up to at least a dollar? or will it continue to go downhill from here due to the economy. Lastly what will happen to WAMU stock when WAMU no longer exsists and CHASE puts its name on every branch?

By: The World's Worst Stock Picker

The World's Worst Stock Picker — Sun, 05 Oct 2008 15:17:52 +0000

QID is very good suggestion since there are no margin requirements. Technical analysis works if you couple it fundamental analysis.

By: filenguyen

filenguyen — Mon, 29 Sep 2008 22:50:43 +0000

your analysis is always excellent! i still like your long play QID–very good suggestion.

late

By: Alex - My Trader's Journal

Alex - My Trader's Journal — Sun, 28 Sep 2008 17:16:05 +0000

Good chart – reminds us why buy and hold blindly isn’t a smart strategy.

By: SpungeBob

SpungeBob — Sat, 27 Sep 2008 16:21:27 +0000

Two weeks ago the employees of WM also pulled a trick by spreading the rumor that the WM is going to be taken over by Morgan and Citi to sell their left overs. @*&$&%

By: Lou

Lou — Sat, 27 Sep 2008 04:59:16 +0000

Washington Mutual, Inc. Announces Conditional Exchange of Preferred Securities.

SEATTLE–(BUSINESS WIRE)–Sept. 26, 2008–Washington Mutual, Inc. (NYSE:WM) announced today that an “Exchange Event” has occurred under the applicable documents.

Source: Washington Mutual, Inc.

Lou
Private Equity Jobs

By: RayJMan

RayJMan — Sat, 27 Sep 2008 01:10:43 +0000

Hey now! Well the truth comes out, admittedly I owned Lehman. Well I owned calls before and made out. It should work again. I’m NOT listening!!! I’m NOT listening!!! Lehman to the MOON! They have 4 different buyers out there!!!! Everyone wants them.

I took it in stride and will probably hold the *now pink sheet* symbol of LEH in my portfolio and won’t sell it for as long as possible as a constant REMINDER to self. If you don’t hear anything positive about a company, probably shouldn’t go there, but I looked at the $8.25 stock price and said to myself: WOW! This is incredibly cheap. I believe book is somewhere in the low teens and it’s undervalue. Another reason is that I saw all the bad news and it just seemed to go away for a while. So I said to myself how much worse can I get and sold an upside call. The upside call helped me not lose “as much” I guess in the long run (it wasn’t a huge, huge position, just 200 shares), but on speculative plays like this they do and sometimes can be promising.
I would definitely recommend simply entering the position if you like the daily chart, but if you want to play “speculative” IMHO, you should buy protective puts to minimize your risk.
I did a protected buy/write last month against another financial stock last month (Wachovia) and made out like a bandit when the monster short covering rally happened. Had it just sat at $14 into options expiration, I would probably be out a little, but definitely not as much.

Shortly, I use a different strategy now, but Put options are great insurance against “casualties” like financials, but they are getting more expensive now because of the new rules. I guess I’ll probably start using them for some of my “speculative plays”.
Sure a lot of you probably know, but just posting for those who have not traded options before:
Basically, If ABC stock is trading $14, and you get a “put” at $14 strike price……the stock falls all the way to ZERO, then you out the premium on the put (the month it expires) and commission. Nothing less, nothing more (such as the complete decline in value of the stock).
Happy Trading,
RayJMan