Struggling Huntington Bancshares cuts jobs, bonuses, and 401(k) match

It's not for nothing that the CEO is coming out to defend HBAN's liquidity position. The shares plummeted nearly 30% on Monday to a new annual low of $1.93, sparked by concerns that the bank may need to raise additional dilutive capital to remain viable.

Today's cost-cutting news helped push HBAN to a healthy gain of more than 8% out of the gate. The beleaguered security has tumbled 84.6% during the past 52 weeks, and yesterday's nadir marked its lowest price in nearly 26 years.

As a result, investors are pessimistically aligned. Traders on the International Securities Exchange (ISE) have purchased 1.75 put options for every call during the past 10 days, suggesting a recent preference for bearish bets. Meanwhile, short interest represents a healthy 14.8% of HBAN's available float.

While this heavy accumulation of short positions could unwind to propel the stock higher today, don't look for the shares to stage any kind of significant comeback rally during the short term. Today's new belt-tightening efforts are a step in the right direction, but Huntington clearly isn't out of the woods yet.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.