Monday, May 10, 2010

Moodys (MCO) Down 11% on SEC Notice; Straddles +76%

The attack on the rating agencies continues. Moodys is down 11% today, this on a day that the market is soaring.

"The company did its own review of how it rated the risk in 2008 and found that it had erred in the way it rated some debt obligations. The ratings are unrelated to the mortgage backed securities for which the agency is already under fire."

May 6 we posted straddles on MCO. Here is an update, May straddles are up +76%, so far.

Computed with StraddlesCalc Tool

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