BAC

[ABCDeac]

Not really a politics issue, but don't feel like wading thru stuff on the Quad or Pit or whatever it is. What do people here think about BAC at $5/share? I own a big chunk of it already (average basis of around $5.80), and was thinking about doubling down. Has to be too big to fail, and therefore it seems like the long-term risk/reward is significantly in favor of buying. Anyway, interested in thoughts or insight, or even purely speculative opinions.

 

[Liquid Karma]

What are the preferred shares going for now?

 

[Jeff Fatt]

Not really a politics issue, but don't feel like wading thru stuff on the Quad or Pit or whatever it is. What do people here think about BAC at $5/share? I own a big chunk of it already (average basis of around $5.80), and was thinking about doubling down. Has to be too big to fail, and therefore it seems like the long-term risk/reward is significantly in favor of buying. Anyway, interested in thoughts or insight, or even purely speculative opinions.

I'm not certain of the bolded part. They have made some pretty dumb moves lately. I've considered it but if you already own a big chunk, I probably would sit tight. This market could be in for a serious haircut depending on what happens with the euro.

 

[Milhouse]

what dumb moves has BAC made lately?

 

[Jeff Fatt]

1. Countrywide
2. Debit card fees

 

[EatLeadCommie]

is it bad that I saw this thread and though Blood Alcohol Content?

 

[TuffaloDeac10]

is it bad that I saw this thread and though Blood Alcohol Content?

I thought the same thing. It's probably good that you (we) think about booze more than you think about Bank of America.

 

[Wrangor]

I am in at 5.50 a share, and feel pretty good about it. When price climbs back up into the high 5's I will probably sell some 6.00 options and hedge my bets a little. BBT and BAC are the only two bank stocks I am really fooling with right now. Used to own a decent amount of RF, but bailed at the right time on that.

 

[WFFaithful]

How much European debt do they hold?

 

[HeavyPetter]

1. Countrywide
2. Debit card fees

1. That was four years ago
2. Several banks were either rolling out debit card fees or testing them when BofA announced their debit card fee.

 

[HeavyPetter]

How much European debt do they hold?

Moynihan says that they're less exposed than their American peer banks. So probably more than they'd like, but about half of what Citi has.

 

[Milhouse]

1. That was four years ago
2. Several banks were either rolling out debit card fees or testing them when BofA announced their debit card fee.

why do you LIE?!?!?!?!?

 

[ABCDeac]

Should have spent my time buying thousands of shares instead of posting and listening to you people. Coulda, woulda, shoulda.

 

[OliveGardenDeac]

Might as well play the roulette table. It's more fun

 

[Wrangor]

I sold $6 Feb12 Options for .56 a contract. If it hits I lock in $1/share profit over 5 months. If it doesn't hit, my average share is now below 5. I love playing these small number stocks with covered calls. You can really write down risk by selling the covered calls at acceptable levels. If the stock drops, you are just dropping with it and you sell the next time. I did this with Synovus last year to the tune of 13% over 7 months. Only thing you have to worry about is the sudden drop (ala Synovus). If a stock drops way more than you optioned out, you get stuck in a guaranteed loss unless you are going to turn it into a long term hold.

I am a huge novice when it comes to investing, but being able to reduce risk, and potentially make 15-25% annualized returns is a nice proposition. I don't have much income with which to make these trades, but for what I have it has worked out very nicely.