Comments on: Trading Idea: Equity Collar on Bank of America (BAC)

By: Weekly Links: Carnivals & Articles – September 12, 2008 | Dividends Value

Wed, 16 Dec 2009 13:05:17 +0000

By: Sensual photography

Sensual photography — Fri, 04 Sep 2009 20:02:53 +0000

I just want to hear from serious investors what they think about day trading. I think that it is a bad idea? What are your thoughts? No I don’t want to visit any websites to make money for all of the bots that seem to rule this section.

By: BAC Equity Option Collar Trade Results | FinancePuzzle

BAC Equity Option Collar Trade Results | FinancePuzzle — Mon, 24 Nov 2008 16:02:43 +0000

[...] Trading Idea: Equity Collar on Bank of America (BAC) [...]

By: Derek

Derek — Thu, 18 Sep 2008 02:04:11 +0000

Working through the numbers i get a max gain of just under 3% if the Shares of BAC hit $30 or higher.

Max loss is slightly under 6%. After commissions does it really merit the strategy? Risk at best is 2X greater than reward potential?

Also you said in the article above for the collar to use the same strike price for buying and selling. What were the Nov$30 puts going for at the time of this paper trade?

Now i like options and their ‘potential’, but you need to be right and in a short period of time.. I have stopped trading options as of late.

The cost of this ‘insurance’ or the large spreads between buy/sell or liquidity have made it less appealing.

By: Investing Carnival #11 — Old School Value

Investing Carnival #11 — Old School Value — Tue, 09 Sep 2008 14:41:15 +0000

[...] BAC Equity Collar Option Strategy: Equity collars are utilized by investors who are looking to minimize the downside risk of a trade, foregoing upside potential in return for downside protection. Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]