Wells Fargo gets strongest 1-day gain in 18 years

[muzie_IHB]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiZ4C0cWe7.g&refer=home



All financials rallied incredibly today.



Bank of America + 22%

Wachovia + 15%

JP Morgan +16%

etc.



I'm amazed by the kind of market volatility we're seeing here. Had some deep in-the-money WFC puts that now have a good chance of expiring worthless Friday. Serves me right for holding puts with an expiration date so close to earnings release, doh.

 

[lawyerliz_IHB]

BankUnited, which has my vote for next in the crapper,

double.



Yeah, from 44 cents to 88 cents. Pardon me while I am not

impressed. And WaMu is up sharply, but still under $5.

Pardon me while I continue to be not impressed.

 

[muzie_IHB]

The rally just seems so out of proportions. One bank reports profit growth with declining revenue but apparently improving margings - and all of a sudden every bank gets a sizeable price increase.

 

[awgee_IHB]

Wells Fargo changed it's accounting standards for delinquency charge offs saved it about a nickel a share.

 

[tmare_IHB]

I just wouldn't touch any financial options right now, it's too crazy. Stick with the commodities for now until the world starts to make more sense.

 

[no_vaseline_IHB]

They were beat up so bad just about any good news was bound to be cause for a rally.



The week isn't over.

 

[IrvineRealtor_IHB]

[quote author="lawyerliz" date=1216277874]Pardon me while I am not

impressed. And WaMu is up sharply, but still under $5.

Pardon me while I continue to be not impressed.</blockquote>


<em>I am Jack's complete lack of surprise. </em>

-Tyler Durden

 

[vicstah_IHB]

WaMu is not special. WaMu is not a beautiful or unique snowflake. WaMu is the same decaying organic matter as everything else.

-T.Durden

 

[Daedalus_IHB]

[quote author="tmare" date=1216294328]I just wouldn't touch any financial options right now, it's too crazy. Stick with the commodities for now until the world starts to make more sense.</blockquote>
What has the world come to when commodities are recommended as a safe haven from the volatility of the stock market?

 

[tmare_IHB]

IAC- That's exactly my point, but here we are, it's all upside down.

 

[no_vaseline_IHB]

Three words:



Naked Short Covering.



Don't get caught out on Monday when the tide goes out.

 

[muzie_IHB]

Well there we go, those puts expired worthless after all. From a +200% gain to -100% loss in 3 days.



Wise master says "Painful lessons are the best ones".

 

[tmare_IHB]

What were the puts placed on?

 

[muzie_IHB]

They were Wells Fargo July puts at a strike of 25.