#17 New Position: USBp

Bank stress test results are supposed to be released on Thursday. As an exercise, I went through 10k's and sellside reports to compile data to do my own stress test. My numbers came out pretty clear in favor of Suntrust (STI) and against PNC and USB. This is the exact opposite of consensus opinions that favor USB and PNC and hate STI (bc of the Southeast (FL) exposure). To have some skin in the game, I did want to be long the name I like and short the other two. However i am cognizant that these names can rip hard and fast in either direction so I thought it would be more prudent to minimize downside by buying options. With stocks up today, the calls are more expensive so I have delayed in buying STIc and just took a 1% position in USB puts with May expiry.