Buy Alert: September 25, 2015

| September 25, 2015

Buy Alert:  September 25, 2015

 

Trade Details

Buy Bank of America (BAC) November 20th 16 Calls for $0.75 or better (lower)

 

Why?

Whether you think the Fed should raise rates this year or not, it seems pretty clear Yellen and the FOMC are set on at least getting one hike in before the close of 2015.  That’s good news for banks, which make more money on the interest rate spread when rates are higher.  BAC remains at very affordable levels and is trading well under its 50-day and 200-day moving averages.

We’re going to buy November BAC calls.  Conservative investors can take profits at $17.00.  Aggressive investors can hold up to $18.00.  For risk control, conservative traders should exit at $14.50, while more aggressive traders can hold down to $14.

 

 Recent Activity

Bank of America

 

Category: OTW Buy Alerts