C

OIB Trade Alert: BAC, C

We temporarily exited our positions in Bank of America (BAC) and Citigroup (C) to avoid risk associated with this week’s Federal Reserve decision on interest rates. Now that it is behind us, we can get back to trading these stocks for income. I am recommending puts to sell to reduce our net debits on the…

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OIB Trade Alert: BAC, C

The Federal Reserve is set to meet next week, and the outcome is of great (perhaps too great) interest to Wall Street. The historical relationship between banks stocks and interest rates — i.e., banks stocks go up when interest rates do — has not played out this time around. Our Bank of America (BAC) and…

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OIB Trade Alert: BAC, C

It’s time to re-enter our positions in Bank of America (BAC) and Citigroup (C). Both stocks are higher over the past week despite a mixed bag of earnings from the country’s biggest banks. For its part, Bank of America reported better-than-expected first-quarter revenue of $23.33 billion and earnings per share of $0.80. Meanwhile, management said…

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OIB Trade Alert: C

I am recommending we sell our Citigroup (C) shares. The bank reports earnings on Thursday, and I do not want to hold a position through the announcement. We will carry over our net debit and I will recommend a put to sell once the earnings dust settles. Current Stock Price: $50.77 Cost Basis: $66.04 Action:…

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OIB Trade Alert: C, GM

I am recommending we allow our Citigroup (C) and General Motors (GM) calls to expire worthless. Both stocks have been hit by concerns about slowing economic growth and perhaps jitters about the companies delivering revenue guidance that is below estimates when they report later this month. I plan to recommend selling our Citigroup shares next…

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