A diary of the thought process behind my investment decisions
JPMorgan Warrant Auction Tonight
The government will be auctioning off its JPMorgan TARP warrants tonight. The auction is expected to fetch $1 billion. It is likely that option desks will be the major buyers. That means shorting JPMorgan stock tomorrow to offset their risk. The amount that would be needed to be shorted will likely be well in excess of $1 billion. This auction has been well advertised so its possible that people went short ahead of it. Still, this is more supply in the financial sector.