Volume in Bear Stearns options is running three times normal, with 165,000 puts and 90,000 calls already traded today. The stock is sinking, as endless pledges of liquidity leave investors guessing about the true extent of the problems. CNBC is now reporting that the firm is being shopped around. This makes sense, given the loss of market cap and the $80+ per share in book value. In addition, a buyout might help to restore some counterparty confidence as well.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.