“Someone is ferociously short MBI”
You got that right !...The downtrend started in October, yet the big spike in volume didn’t come until December and continued after that...Takes awhile for information to flow, even to some of the guys shorting that stock...It could be a large investor or a few somewhere in the Mideast who waited too long. like aside from Google or Yahoo, who would think that a Triple AAA Insurer would dive from the 70s to the teens in just a couple of months !..Eempossible !
I just took a look at the option chains on MBI.
Heh.
There’s darn few people bettin’ long.
Pull up an options chain on MBI. Look at out Aug ‘08 and Jan ‘09.
NB that they created a $2.50 strike put in Jan ‘09.
Look at the volume of puts at $5.00 out past May.
Heh.
The second big monolithical insurer is Ambac, Inc.
yitbos