From Washington's Blog:
Bank of America Stock Is Up ... But So Are Bets That It Will Fail
Zero Hedge notes:
With Bank of America stock up 9%, its CDS is... 35 points wider: the highest since April 6, 2009.
(Higher credit default swap spreads mean more people are betting the bank will fail.)
Even though the stock is higher Thursday on an up day for banks and the broader stock market, Bank of America's puts are gaining much attention in the options market.
When investors buy put options, they are betting that shares will fall in value.
Just like Lehman before it went belly up, Bank of America is desperately trying to raise cash.
More on banks: