I expect that Lehman will fall just like Bear Sterns did, with a Fed bailout taking the 'liquidity issue off the table' for them, but still roiling their stock values. Buy and hold the LEH Jan 40 Put. You might lose money, sure, but so far I haven't. With their 1x30 leverage, poor Tier III asset pricing, and exposure to the commercial mortgages & stated-income loans, it looks like a good target!
Of course, I could be wrong!?
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