The markets were hit with a bomb today when it was announced that Goldman Sachs(GS) was being charged with fraud from the SEC. Many people are running scared from the financial sector but you can do the opposite and make a bundle of cash. Many people feel that Goldman is the first of many to be hit by the SEC. Among others are Merril Lynch and Citigroup. The financial industry is probably looking to continue on the downside, so how do you make money? Puts baby. If you own long positions in the banking industry I would by puts in companies like Citigroup, Goldman Sachs or Credit Suisse. You may also want to look into defensive stocks like Target or Proctor and Gamble who should benefit from this fallout.
Puts are very risky so make sure to consult a professional if you are unsure.
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