Too afraid to trade

I started today thinking about making some great trades with all the volatility in the market, but in the end, I just got too afraid to trade. As all my loyal faithful readers know by now, I have been having some problems with my BYOND play. I sold the put at .25 on Monday and during the day BAC dropped down to 3.77 which is basically at my break even if I got called on the option. BYOND shot up to 1.00 a share which put me down almost -300%. Well BAC rallied thru the day and ended up $.14 at $4.84 ($5.15 after hours)....thank god!!! Right now I'm ONLY down -135%.

I can't wait for this trade to expire(profitably I hope). With 11 days left, it shouldn't be too much longer guys. So whats next in line? With the stimulus package looking like its going to pass, we have to think about what does that mean for stocks. Specifically, I want to talk about financial stocks. If you think about Obama (yeah I bolded it), he won't let it pass and not put in his BAD BANK. His birddog servant Geithner, is going to buy these toxic assets and he will set a floor on them. We all know that he is not going to price these securities below what all the major banks have priced them. This will create a huge mark to market loss for every bank on the street and destroy the little capital they have left.

No No No...He knows that he cannot set the price below and try to buy them "cheap" because he cannot afford to buy every toxic asset. So when the "floor" of these toxic assets are higher than they are being written on the bank's books, we will see accounting gains for them and higher capitalization ratios. Who benefits from this plan?!? Everyone mofo!!! Especially those that are willing to hold bank stocks that have the highest writedowns per toxic assets (CDS, CMBS, ABS, Swaps, Swaptions, Etc....) What bank out there has marked down these assets??? I'm glad you asked. GS and MS are two that come to mind. So go long baby go long. Buy GS and MS or buy call options. If you have the ability and the balls...go short some puts on both stocks. Who needs to hedge? Not me.

On a lighter note. I need to plan a valentines day for my girl and me. Please feel free to send me suggestions either through comments or email. If you don't know my email address, just email me a request.