Lehman Bros (LEH) short-term puts are seeing active trading after Ladenburg Thalmann analysts made cautious comments about earnings in the current quarter. The bank will be hurt by less effective hedging strategies. If those strategies failed over the past three months, LEH could post a second quarter loss, according to the analyst. Lehman shares sank $1.86 to $40.14 and the June 42 and June 35 puts are the days most actives. In all, 84,000 LEH puts have traded on the day, compared to 23,000 call options.
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.