It seems that two of America's top financial institutions are not going to prevail from the so called 'credit crisis' plaguing so many Americans unscathed. At least this is not more news on Mac and Mae; but Wells Fargo and Suntrust Bank.
It seems that investors we're very shaky on the earnings reports released this week of Wells Fargo and Suntrust. The market responded to this by trading the firm's down Monday. They responded significantly in the Put contracts driving volume alerts for the derivatives in various months.
The most action was being exercised by hedge funds positioning themselves with bear put spreads of Fargo and Suntrust. Bear put spreads are the simultaneous purchase of a put option with a higher strike price and the sale of another put option with a lower strike price.
The strike prices being exercised were within the October $30 and $45 range.
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