Random Thoughts: Is the Obama Bounce Coming?

By Todd Harrison  JAN 20, 2009 12:15 PM

The tape watches Washington with bated breath.


Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial). It's being shared here for the benefit of the Minyanville community. See also History in the Making?

Now, if only Mr. Lewis would stop hanging out with Vivian Ward! - 9:46 am

Back in November, I bought the "Citigroup (C) $3.75 Infinity Call" for $3.75 and subsequently sold it for close to a double. A few Minyans have inquired whether similar opportunities exist in Bank America (BAC) or others. 

My response, shared now, is that it's certainly possible to catch a trade in these names but the capital structure, coupled with the specter of nationalization, makes equity a vulnerable investment.

Be that as it may, and due in part to my sense that we won't see an outright drubbing today as our new President takes office, the e-mail triggered my trigger finger and I bought some Bank America (under $6) for a trade. I'll slap a trailing stop on it--nice and tight, like fitty cents--and look for the next opportunity.

Win, lose or draw, defined risk is your friend.

Gate Sniffage! - 10:15 am

Star Power - 11:16 am


Position in BAC, SSO, USO