Wall Street is bracing itself for further write downs from UBS, which holds $15 billion in subprime securities and $17 billion in Alt-A.  Says the Wall Street Journal, "Write-downs announced Monday by Lehman Brothers are ‘clearly indicative of further write-downs for UBS, as is the deterioration in AAA-rated securities and the U.K. mortgage market.'" 

Meanwhile, some top UBS executives have been selling their rights to buy new shares, moves that decrease their ownership in the bank.  It's not what you'd call a sign of confidence.

In our opinion, the best way to trade further UBS downside is to buy the September 2008 UBS 22.50 put (UJWUX).