Lehman Volume Surge On Hopes & Prayers (LEH)

Posted in General, Options 
August 22nd, 2008

Lehman Brothers Holdings (NYSE: LEH) has already traded almost half of an average day’s volume, and it’s only 9:51 AM EST.  The brokerage firm is up 13% at $15.54 on over 25 million shares after reports that the Korean Development Bank is interested in acquiring the company.  Key financial analyst Dick Bove of Ladenberg Thalmann believes that a buyer could essentially finance the company for nearly free if they sold off the money management unit.  He also believes that a hostile takeover is likely and that CEO Dick Fuld is going to be under severe pressure as soon as next week to leave or to take action if nothing comes.  This may be a huge improvement from the lows of $12.02 seen recently, but shares were north of $67.00 over the last year.  We have already seen more than 1,000 contracts trade in call options the SEP08 strike prices of $15, $18, and $20…… stay tuned!  Sometimes hopes and prayers do actually come true.


August 22, 2008

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