Wachovia Stock hits 16-year low
Friday the 13th came as a real black friday for the 4th largest national bank Wachovia (WB), as its stock price tanked to a 52-week low. Wachovia hit a 16 year low with more worries about rising credit losses continue to shock investors in to a panic to dump these stocks. The financial selloff came a day after Cleveland-based KeyCorp (KEY) plunged 24% in the wake of its decision to raise $1.5 billion in new capital and slash its quarterly dividend by half to save money. Other regional banks that have been in free fall this week include Washington Mutual (WM), which has lost half its value in just the last 45 days.
Take a look at the option volume today, as we are only 1 week away from the expiration date of June 20th, which is next Friday.
As you can see an explosive volume today for June 15 Strike, 10x the volume for all previous open interest, and almost 3x more for June 17.50.
Obviously, the big boys are hedging against for more than 5,000,000 shares of WB stocks to sink further within the next few days.
This is opportunity to for you guys to take advantage to make some quick profit with downside weakness with Wachovia on Monday.
Andy Huang
