Wednesday, October 21, 2009

Credit Suisse Sees Options Gaining (CS)

Credit Suisse Group (NYSE: CS) is trading 9X average call volume with action all through the day at the November $60 calls, with a few 500+ blocks bought.  This is a high dollar volume action with the calls trading north of $2.50 much of the day.  Credit Suisse may be the next financial to post blowout numbers and it is extremely cheap on valuation.  Earnings are tomorrow before the open and it’s recent overhaul of compensation packages may be cheered by investors.  The recent resurgence of IPOs, stock offerings and M&A should boost its large investment banking business.  It is also in a position of financial strength to return cash to holders and/or make deals.  Record low interest rates also likely resulted in great profits in its debt and commodities trading units.

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