Lucky 13

Looks like this bear is as big, bad, and ugly as we thought. Yesterday I talked about my buddy Scott's 13 being lucky or unlucky. I was banking on lucky and bought a put contract for Bear Stearns (BSC) like everyone else. It hit paydirt this morning. I was trying to lock in a profit near 200% in less than 24 hours, but the market was too volatile and my computer orders not fast enough for the 60 million shares changing hands with brokers all over the country. By the time my sell to close order was taken, I had to settle for a meager 100% profit. Oh well..Better luck next time.

A bad day for some, yes indeed, because Bear Stearns -as it stands 2 hours into the trading day- has lost nearly half of its value. Crazy. Just goes to show you that if the lemmings are buying options 3:1 in favor of puts over calls, there's a good chance something bad will happen with the stock. There were enough people in high places that talked about the big Bear having cash flow problems to make it happen. Creditors were backing out left and right, and people were shorting the stock like crazy the last couple of days. This amounted to an implosion this morning I can't ever remember seeing with such a prestigious company. This market is wild, kids. Hold on for the bumpy ride.

CZ