Reported by: GuruVIX & NeWorld Research
Regardless of AIG, Bank of America is a strong company, with strong fundamentals. This company (though considered unpredictable) is solid! I recommend the following trade.
GuruVIX suggest: Iron Condor - Bank of America - BAC
(Iron Condor - Set-up) - Buy - Call - Sell - Call / Buy - Put - Sell - Put
Month of expirations (October 2013) - "Very" Short-term
Buy - (5) October 2013 -Call - Strike ($14.00)
Sell- (-5) October 2013 - Call - Strike ($15.00)
Buy - (5) October 2013 - Put - Strike ($13.00)
Sell - (-5) October 2013 - Put - Strike ($12.00)
Cost of trade: (You receive a premium of 0.36 /+$152.70 )
Our Price Target Minimum ($15.00 per share)
Minimum Price Target Profit ( $317.62)
This is a strong trade with BAC in the headlines, we are looking for our price target near expiration date.
Check out this recent article on Bank Of America on Seeking Alpha
Disclosure: I am long BAC.
Additional disclosure: GuruVIX.com - Check it out for content daily!