Thursday, April 29, 2010

Buying Bank of America (BAC)

I am adding BAC straight calls into the portfolio.


- Buy to open Aug $20 calls for $0.68


I believe the turnaround in housing (BAC owns Countrywide) and corporate M&A and trading activity (BAC owns Merrill Lynch) are significantly under discounted in the stock price.  I expect the stock to make a run to $22 to $25 by the end of year.  


Good luck!