04-13-2009, 03:44 PM
I was about to pull the trigger on Goldman options earlier today - only really didn't because I was pulled away from my computer and didn't get another chance.
Lucky for me, though. Although they CRUSHED earnings ($3.39, compared to $11.67 estimates), they are also doing a $5b offering so they can pay back the government. That is driving down the price AH, although I think this is ultimately a huge positive for the stock.
Be careful with near-term options, though. I think a lot of these banks will try to do offerings now that their shares have bounced back somewhat. Any dillution will probably push down shares in the short term.
Lucky for me, though. Although they CRUSHED earnings ($3.39, compared to $11.67 estimates), they are also doing a $5b offering so they can pay back the government. That is driving down the price AH, although I think this is ultimately a huge positive for the stock.
Be careful with near-term options, though. I think a lot of these banks will try to do offerings now that their shares have bounced back somewhat. Any dillution will probably push down shares in the short term.
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market