What are we expecting with 3 major banks reporting earnings this week. JPM, C, BAC plus the DOW approaching 10000. The RIFIN is at its highest point to date at over 800. If you missed out on the bank run-up play the opposite side. Analysts expect BAC to be $30 in 12 months and JPM around $60 this means 3X ETF that are bearish on the financials are going to continue to drop. Look at Nov or Jan 16, 17 PUTS for FAZ, Jan buys you more time value and takes advantage of the possible January effect. I remember when UYG a 2X financial bull was 1.91, I had 11k shares at that point but got greedy and ignored the rules and remained bearish on them hence the FAZ lost identified on the right column of the blog...
Banks are about half way through their balance sheet losses so still much upside, especially with fees, refinances with rates so low, M&A and restructuring...
Happy Trading
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