Not surprisingly, the financials are picking up steam this morning on the heels of news that Lehman Bros. Holdings Inc. (LEH) could be bought out, resolving another problematic piece of the credit crisis.

With most of the uncertainty priced into the sector at this point, the risk reward ration looks promising. In other words, the downside appears limited compared to the likely upside.

In pre market trading today, shares of LEH were up nearly 15%. The Ultra Financials ProShares (UYG) moved up 7% ahed of the opening bell and has added to those gains in regular session trading.

A two day chart of UYG below with the lighter shaded areas representing the after-hours and pre-market respectively.

I made the call to pick up shares of UYG in the pre market (or regular session) yesterday. We've gotten tons of emails from subscribers wondering if its too late to buy into the rally. In short, it's not. However, I'd suggest a protective stop on the UYG postion at 18.76.