Chungst

Making Sense of David Einhorn vs. Lehman Brothers

"Mr. Einhorn’s repeated public slamming of Lehman Brothers reportedly has contributed to the decline in Lehman’s stock price."

Give us A BREAK!!!

Mr. Einhorn has been short LEH for quite some time (a number of months now!) and that has been BAKED into the stock price. LEH's stock declined quickly for a host of reasons, many of which will never be explained. Mr. Einhorn's comments may be a catalyst for said decline, but LEH's decline was due to the entire market forces at work and not solely due to an existing (limited) position in Mr. Einhorn's $6 billion hedge fund.

The current high volatility in LEH options reflect both GREED and FEAR in LEH stock.