Tuesday, January 13, 2009

BOTD = Bank Of The Dip! ~ Bank of America Corporation (Public, NYSE:BAC)

The "SPREAD the BOARD" options strategy!! 

The BAC Jan, Feb, & May PUTS. 

 Did we play it exactly right?  not at all, but ... 

The JAN 12.50s* 
*SOLD YESTERDAY?!

BOTD left today's 50% move on the table, but ...  

  
The FEB 12.50s

$2.61 +0.55 (+26.70%)

can't complain, eh? 
 
$$$$




The MAY 12.50s, hmmmm .... a few weeks ago we said, "BUY the MAY 11s."  The next day BAC jumped to $14.50ish, so we bought the 12.50s.  We should have stuck to our original plan of buying the 11s. 

Alas, the 12.50s are too thin (BAD) and too deep in the money now.(GOOD)  I know, haha, such a profitable problem, but... 

it's time to "Roll-Down" !!! ... sell the May 12.50s, wait for a mini-pop then buy the 10s,  or 7.50s .... not sure which, yet.
   
p.s.  Who's Twizzlin'?!!? with BuyOnTheDip on StockTwits.com & Twitter.com

What Does It Mean Icon
What Does Roll Down Mean?
When an investor replaces an old options position
 with a new one at a lower strike price.
Investopedia Says Icon
Investopedia explains Roll Down...
When investors are bearish on a stock
 they will typically roll down.  



 "... this industry is like BACteria and my flow is a germ."

19 comments:

BUY ON THE DIP said...

LONGS:

RIMM calls.
WFC calls.
ANR calls.

and PBR

g'nite.

BUY ON THE DIP said...

Winners!!!!

BUY ON THE DIP said...

BG down 100%!!

Take profits!

Unknown said...

BOTD - wonderful call on Jan BAC...Was busy these days, stayed until today (by accident ;)) and sold on the dip. Don't have Feb or May though :). What would you consider as mini-pop to enter?

BUY ON THE DIP said...

KUB down 4%ish...

Kidd Jones said...

BOTD

any luck trading LVS? i have been watching this stock since $3 and reach $8.3 with good volume and been pummeled this week back to $6.25. i am thinking of starting a position here. any thoughts

BUY ON THE DIP said...

AMR

Real-time: 10.17 -0.73 (-6.70%)

short* planes made from steel

X
Real-time: 30.38 -2.42 (-7.38%)

BUY ON THE DIP said...

short * OIL & CHINA!

PTR
80.52 -3.06 (-3.66%)

BUY ON THE DIP said...

COST
Real-time: 47.88 -1.06 (-2.17%)

daddy wins!

tighten stops everywhere!!

Anonymous said...

BOTD

What was the target on COST Jan 50 puts?

Anonymous said...

BOTD is the truth!! Make money and listen to DIP Tracks!!! Best of both worlds!!

New BOTD Quote...

2009 is the year I get mine!!

Right is down!

BUY ON THE DIP said...

AMR

LOw of Day

Real-time: 10.04 -0.86 (-7.89%)

BUY ON THE DIP said...

citi group, .... aren't they a bank ?

Real-time: 4.54 -1.36 (-23.05%)

BUY ON THE DIP said...

covered COST and JRCC.

both winners!

rule #5, this is tooooo easy!

BUY ON THE DIP said...

spec longs:

added TNA $26.28 and ERX $32.79

hold the bucket.

"Get Short, Stay Short"

BUY ON THE DIP said...

BGZ
69.18 +6.17 (9.79%)

TZA
60.22 +6.94 (13.03%)

"get SHORT, stay SHORT!"

BUY ON THE DIP said...

BAC dat ass up!!!

After Hours: 9.69 -0.51 (-5.00%)

Bank of BOTD.

Unknown said...

someone is making money on BAC puts I sold today LOL

BUY ON THE DIP said...

FAZ 55 !?!

After Hours: 57.00 +3.58 (+6.70%)

... hmmmmmmmmmmmmmmmmmm