A Dimon in the Rough

U

UT1986

500+ Posts
it will be interesting to see how the Euro crises plays out and how it will impact the global economy if some of these derivatives explode, especially here at home in the U.S. That's a lot of risk exposure from 5 U.S. banks no matter how you slice it.

JP Morgan - 71.5 Trillion notional value in derivatives
Citi Bank - 51.9 Trillion
BoA - 46.4 Trillion
GS - 42.8 Trillion
Wells Fargo - 3.8 Trillion
The Link
 
You're just being a nervous Nellie. There's nothing to worry about, so don't make a mountain out a mole hill. Now go get yourself a sandwich and watch some TV.

Seriously, though, one wonders how in the world JPM or anybody else can quantify their risk/exposure until after the earthquake hits. I have to confess that I lost a shitload of money selling naked puts on some (supposedly good) tech stocks back in 2001. I was levered up and when tech stocks kept tanking, stood my ground and even levered up more, thinking that a market rebound was just around the corner. I got my *** absolutely handed to me and got what I deserved, a massive tax loss that I'm still carrying forward today.

Well, at least the good thing in this case is that JPM has the Fed and Washington (read: U.S. taxpayers) to bail them out in case things go south, eh?
 
I follow the Bill O'Neil CAN SLIM strategy for buying/selling stocks. Haven't messed w/options. You got to have an exit strategy...know your sell price before you buy and bail if your loss approaches 8%. Buy high, sell higher.
 
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