Thursday, November 19, 2009

Insurers Are Struggling: Profit Up Or Down

Manulife announced today that it is rasing $2.5B, dilluting its common stock shareholders. The insurers are in big trouble and losses are only starting as commercial real estate begins to crumble.

The stock is down about 8% today. Will manulife recover or sink further? With straddles, the investors can profit either way. Here they are for November (wild and risky), and December.

And for a change, here are straddles for Sunlife, trading in Canada:

These were computed with our StraddlesCalc tool. With 1 day to expiration, November is too risky, although the move required is only 3%.

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence. Options are very dangerous and may cause 100% loss. This is not adfice.

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