Wednesday, March 18, 2009

The pairs trade-As advertised

Maybe someone should re-read this post from last Thursday!

HIG is like a triple levered upside ETF on the market. After 790 on the S&P, Hartford starts looking better with it's guaranteed investment products tied to stocks.

The April 7.5 calls are 1.05. They are a buy.

Take a look at the triple financial ETF, the FAS, and the July 7.5 calls at $1.15. That's your financial pairs trade for those that love leverage!

The April 7.5 calls on HIG closed at $2.55, up 255%.

The July 7.5 calls on FAS closed at $2.20 up 200%.

Two doubles, that are getting ready to double again!

Did anyone see where the S&P closed at today? It's at 800, 10 points above Hartford's bogey.

Get the S&P to 850, and Hartford's problems go away.

Today HIG traded 51 million shares. Who were the jokers shorting this number?

Probably the same clowns that were short BAC!

HIG, and the FAS both go materially higher.

And their next move starts tomorrow!

As advertised!

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