All the bank stocks rallied in the last week with most of the top bank stocks went up by more than 3.5%. Stocks like Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS) and Citigroup Inc (NYSE:C) went up by around 4% and Morgan Stanley (NYSE:MS) went up by around 6%. Fast Money traders Pete Najarian, Steve Grasso, Tim Seymour and Guy Adami talked on CNBC about their views on Bank stocks.
“When I look at some of these names, Goldman Stocks, Morgan Stanley, Bank of America, Citi, USB, all of these names are performing and all hitting new highs today. I think that continues and I continue to want to roll up and stay in the trade and limit my risk to the upside. Not long any of these in terms of stock except Bank of America. But I think options is the way to go,” Najarian said.
Najarian said that all the bank stock are rallying and hitting new highs on Friday, which includes names like Bank of America Corp (NYSE:BAC), Morgan Stanley (NYSE:MS), Citigroup Inc (NYSE:C), Goldman Sachs Group Inc (NYSE:GS) and U.S. Bancorp (NYSE:USB). He said that he is not longing any of these stocks as he wants to stay in the trade. But he mentioned that he would long Bank of America Corp (NYSE:BAC) stock. He feels that options are the way to go with these bank stocks.
Grasso said that Bank of America Corp (NYSE:BAC) stock has done significantly well and outperformed all the bank stocks since the financial meltdown, but still the risk factor associated with it due to settlements makes it unattractive. He added that Bank of America stock has went up by 30% YTD and 600% since the financial break down. He feels that it all depends on how one values the BAC stock.
“Today’s bank rally was all about payroll number. Let be clear. This is a break out. All these guys went to fresh 52 week high, this is because whatever happens to the tenure bond, bottom end of the curve is moving, it is steepening. They will profit from that. Banks love this,” Seymour said.
Adami said that U.S. Bancorp (NYSE:USB) has hit a new all-time high on Friday. He added that Morgan Stanley (NYSE:MS) has changed its business model for good and this is one company which has a lot of runway ahead of it in the banking sector.
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