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New York Community Bancorp
NYB � New York Community Bancorp � News last week that this 212-branch community lender would take on the seized assets of AmTrust Bank saw its shares jump 10%. Lucky investors were treated to a further 8.5% on Monday to $13.40 as the bank said it would finance the takeover with the sale of 60 million shares.
While the medium-term outlook maybe pretty bullish since it will expand by more than one third its number of accounts at a stroke, near term bears spent an average of 19 cents to lock into protective put option plays that would compensate them in the event that shares suffered a hiccup before options expire in two weeks time. Elsewhere happy banking bulls were keen to buy calls expiring in January at the 12.5, 14 and 15 strikes indicating that a successful takeover at AmTrust will attract more investors in the coming months.
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Posted by Andrew Wilkinson | View more articles by Andrew Wilkinson
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