thouughts on BAC? (work, companies, bankruptcy, returns)

[Currency Pair Crocodile]

Originally Posted by cyclone8570

Bought 1500 shares today at $7.01/share

I had bought 275 shares at $9.75/share about 2 weeks ago... so this should help take the sting out a little bit

Plan to hold for 5 years or until we see $14/share

Looks like 6.3 yesterday could be the bottom. Wish I had the guts and nuts to make this buy.

[Oildog]

AC I was tempted too when it got in the 6 range, but I wasnt sure if I was throwing good money after bad and wanted to wait a week to see if things stabilize.

[SLCPUNK]

Thoughts on tomorrow? A light sell off?

[Currency Pair Crocodile]

Good reads on BAC. Tons of rumours floating around.

Bank of America: Rumors Provide Rare Opportunity - Seeking Alpha

Top Sells of David Tepper's Appaloosa Management - Seeking Alpha

[earlyretirement]

I bought a ton 2 days ago at $6.50. Feel good about that purchase. I dumped part of the position yesterday but holding the other half. Tons of volatility with this stock so makes for a good trading stock.

[modeerf]

Originally Posted by earlyretirement

I bought a ton 2 days ago at $6.50. Feel good about that purchase. I dumped part of the position yesterday but holding the other half. Tons of volatility with this stock so makes for a good trading stock.

Better odds than Vegas?

[howard555]

Originally Posted by Antlered Chamataka

Looks like 6.3 yesterday could be the bottom. Wish I had the guts and nuts to make this buy.

$6.87 at the moment.
Then buy 10 of the May 2012 $8 call options for $1.48 or $1480.

We have 7 days left on the August options. You can get .23 (or $230) for a August 20 $8 call.

What could happen:
1. The stock goes above $8 and you keep the $230 and the value of your May $8 call becomes about $1750 = a total profit of $500 ($230 + $270) in less than 2 weeks.
2. The stock stays below $8.00. Keep the $230 and now your cost for the May $8 calls is $1250 and you sell another one in September.

You can sell these every month. Since the August $8 calls only have 7 days left, then in September, if #2 above happens, do not sell the September $8.00 call too quickly. Give the stock a chance to move up and you might be able to get about the same 23 cents for a September $9.00 call.

They also have weekly options.
From now to May you have 38 weeks.
$1480 (your cost for the May $8 calls) / 38 weeks = less than 40 cents per week. Since you have 10 contracts you could sell the weekly $8 or $9 call, for only .04, and over the 38 weeks recover all of your initial cost.
The idea of course is to not jump and sell the option the first week of the new month, give the stock a chance to run up.
You might decide to just sell your May $8.00 calls and take the profit.

Downside:
The stock goes down and you have to sell lower strike options, like a $7.00 call to make maybe 23 cents, or $230 a month.
Doing the monthly options, you got 9 months left. If you sold the $8 or $9 calls (or other higher ones if the stock moved up) for around 23 cents
= $230 x 9 = $1970. You only invested $1480.

Worst case the stock goes WAY down and you have to sell lower strikes each month, or each week, like a $6 call.

Or just spend $6870.00 for 1000 shares.

Using the above call spread lowers your risk.

$6870 could go to zero.
$1480 could go to zero.

Do you use options at all?

[howard555]

Originally Posted by Antlered Chamataka

Great buy. But it's a steal at 1.75 or something. Can go lower.

I have never seen ANY stock that has as many outstanding shares at this bank. Over 21 billion.
It's got a future large reverse split written all over it = beware.
Many reverse splits don't work. Ex: Citibank.

[h152cc2]

the VIX index is surging due to this volatility.
This will all calm down in about 1-2 months though

There is no where for BAC to go but up!

[UrbanAdventurer]

Originally Posted by Antlered Chamataka

Looks like 6.3 yesterday could be the bottom. Wish I had the guts and nuts to make this buy.

As long it was money you didn't mind losing. Totally speculative gamble. I bought some WaMu a few years ago when it was dirt cheap thinking "hey, who knows", and obviously that didn't end well.