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Houdini · 08-28-2009, 09:03 AM

Be careful to lump AIG, FNM, and FRE with other financial stocks. They are not related. Although I would even put C in there, but they have some fundamentals and I see them coming back. Don't get me wrong, I've owned all of these stocks as specs, but this week, I've sold my positions. I've had some really nice returns and I'm not getting greedy and you can see this short squeeze a mile away. AIG is 80% owned by the government, they owe them $180 billion. Even at the current stock price, AIG's market cap is $6 billion. Also, due to the 20:1 reverse split, there aren't many shares out there. New SEC regulations require you to own the shares in order to short them. This is why the stock is being driven up. It's a massive short squeeze! Also, from people just jumping on, hoping to get a ride lol. Purely speculative. Notice, the option puts are going up, instead of down, when the stock price is going up. That's an indication that people are ready to short this. So, although, I've enjoyed a nice little ride up these past weeks, I am now ready to go the other way down. May take a bit to get the momentum, but I am buying a nice chunk of options puts for Jan 2010 for AIG. I don't see this stock sustaining any value, even in the short term. But good luck, remember, don't get greedy.

08-28-2009, 09:03 AM
Houdini Confirmed User Join Date: Dec 2001 Location: SoCal Posts: 1,651	Be careful to lump AIG, FNM, and FRE with other financial stocks. They are not related. Although I would even put C in there, but they have some fundamentals and I see them coming back. Don't get me wrong, I've owned all of these stocks as specs, but this week, I've sold my positions. I've had some really nice returns and I'm not getting greedy and you can see this short squeeze a mile away. AIG is 80% owned by the government, they owe them $180 billion. Even at the current stock price, AIG's market cap is $6 billion. Also, due to the 20:1 reverse split, there aren't many shares out there. New SEC regulations require you to own the shares in order to short them. This is why the stock is being driven up. It's a massive short squeeze! Also, from people just jumping on, hoping to get a ride lol. Purely speculative. Notice, the option puts are going up, instead of down, when the stock price is going up. That's an indication that people are ready to short this. So, although, I've enjoyed a nice little ride up these past weeks, I am now ready to go the other way down. May take a bit to get the momentum, but I am buying a nice chunk of options puts for Jan 2010 for AIG. I don't see this stock sustaining any value, even in the short term. But good luck, remember, don't get greedy.