Originally Posted by
ryan1234
Good luck to you....
I'm holding out till this short selling ban is up to put anymore into financials...hopefully there will be some good deals in a few weeks....We'll see what happens... hard to say exactly.... thinking about waiting til BAC drops to $25 +/- (hope it actually happens)
I don't know if you'll see $25 but it will get close. With the stock swap that's going on BAC will be releasing millions of more shares out to the open market. They won't be able to support paying the dividend on so many shares that they'll probably cut it by about 30%. The price will dive pretty hard. I purchased 20 OCT $30 put contracts at $2.57 so if it even approaches $30 I'll be back in the black on that investment.
Like you I'm out too. I cashed in my winnings and sitting this one out till the drop comes. My few options will stay put. I expect them to cut the div during their oct meeting which will probably put them back in play. If not then I'll just swallow the 5k and move on. When it drops I'll be going long on it myself as well. With the acquisition of MER the company is easily worth $50 once they emerge from all this. I'm sure we'll see a market drop or two if WM can't be sold.