Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What does this say about BAC. Those lawyers must be getting expensive. California is also one i wouldn't bet on, it is seeing the first wave of rats jumping ship.
Over 150,000 people moved last yr. From a state that has always grown in migratory sun birds.
What is says is the BAC is under intense pressure from regulators to clean up their balance sheet, shore up capital ratios and reduce risk. This line says it all:
"Restricting credit lines "is a way to show the regulators they are serious about addressing risks," Miller said. "Bank of America is under great pressure, especially with another round of [Federal Reserve] bank stress tests coming up, as the regulators say: 'We want you to tighten up.' "
All of those who screamed that the Banks were evil for making subprime loans to unqualified people and demanded that something be done are going to be in for a rude shock when they discover that something has been done, resulting in they themselves having a credit line called or being turned down for a loan they want. What's the lesser of two evils - easy credit for everyone, or available credit only for the highly qualified???
No doubt, there will be many more like it. This thing is going to bounce back and forth until further notice. Definite money making potential! Took the day off work today and gambled on it
Currently BAC is hovering around 6.25 and I can't do spreads in my brokerage.
Lets say, I buy 1000 shares at this price and if only plan to do weekly PUTs this month, what kind of risk am I looking at? (I know this is a very vague statement but I wanted to make sure if anyone would think of doing this)
So, the current PUT for this week's expiration are,
$7 Strike, at 0.75
$8 Strike, at 1.62
$9 Strike at 2.63
Let say I Sell $8 put for 1.62, if the stock ends up below 8, I could just close the options and retain premium?
I have only completed couple of Covered calls, this is the first time I am going to do PUTs.
Currently BAC is hovering around 6.25 and I can't do spreads in my brokerage.
Lets say, I buy 1000 shares at this price and if only plan to do weekly PUTs this month, what kind of risk am I looking at? (I know this is a very vague statement but I wanted to make sure if anyone would think of doing this)
So, the current PUT for this week's expiration are,
$7 Strike, at 0.75
$8 Strike, at 1.62
$9 Strike at 2.63
Let say I Sell $8 put for 1.62, if the stock ends up below 8, I could just close the options and retain premium?
I have only completed couple of Covered calls, this is the first time I am going to do PUTs.
Thanks
If you that, you are predicting that BAC will be above $8.00 by this Friday.
Don't you own BAC already and sold the January $5.00 calls?
The stock is waaay in the money. You should buy the call back for $1.28 and sell your BAC immediately for $6.27.
Currently BAC is hovering around 6.25 and I can't do spreads in my brokerage.
Lets say, I buy 1000 shares at this price and if only plan to do weekly PUTs this month, what kind of risk am I looking at? (I know this is a very vague statement but I wanted to make sure if anyone would think of doing this)
So, the current PUT for this week's expiration are,
$7 Strike, at 0.75
$8 Strike, at 1.62
$9 Strike at 2.63
Let say I Sell $8 put for 1.62, if the stock ends up below 8, I could just close the options and retain premium?
I have only completed couple of Covered calls, this is the first time I am going to do PUTs.
Thanks
You need $8,000 in your account to sell 10 of the weekly $8 puts.
"Lets say, I buy 1000 shares at this price and if only plan to do weekly PUTs this month, what kind of risk am I looking at?"
...............buy shares and weekly puts?
..............you want to buy the stock for $6.26 and sell the weekly $8.00 put for $1.62?
You need $8,000 in your account to sell 10 of the weekly $8 puts.
"Lets say, I buy 1000 shares at this price and if only plan to do weekly PUTs this month, what kind of risk am I looking at?"
...............buy shares and weekly puts?
..............you want to buy the stock for $6.26 and sell the weekly $8.00 put for $1.62?
That would be hell of a ROI
On a different note, I was hoping to spend that much money on a Single AAPL covered call and sell right before Jan 24th earnings report. I think the odds are better to make more money on APPL Call
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
