Wachovia Corporation (WB) $15.37 -2.04%
Wachovia (WB, news, chart) puts are seeing action early Friday. Shares are trading down 23 cents to $15.46 and 32,000 WB puts traded in the first thirty minutes, compared to 12,000 calls. The decline in the share price and the uptick in put volume comes after Morgan Keagan analysts downgraded WB to Underperform from Market Perform based on valuations. The firm also cites too much optimism on the part of investors and the analysts also say that it is too early for Wachovia’s management to state that it doesn’t need to raise capital. Recall that WB has been one of the leaders during the latest rebound in the financials. From a low of $7.80 on July 15, the stock rose to a high of $19.55 midday Wednesday, or 150 percent.
Category: All Stocks, Banks, Large Cap Stocks
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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.
