ACTION:

Take profits and sell to close Bank of America (BAC) common stock at current levels.

Dear Momentum Stocks Weekly Subscriber,

I have another Profit Alert on a stock that could be on track to test $18 and 52-week highs. However, I want to move on to faster-moving trades after having capital tied up in this name for six months.

 

Bank of America (BAC, $17.55, up $0.24)

Original Entry Price: $17.63 (12/19/2014)

Lowered Price from selling options and dividends: $17.28

Exit Target: $20+

Return: 2%

Stop Target: $15

Current Dividend Yield: 1.3%

Take profits and sell to close Bank of America (BAC) common stock at current levels. I could come back to this name with longer-term call options if shares clear and hold $18, but, for now, we are out.

We previously sold to open (wrote) the BAC January 18 calls for 30 cents on Jan. 2, 2015, to reduce the cost basis to $17.33, and the calls expired for the full premium on Jan. 16, 2015.

Bank of America paid a 5-cent dividend on March 4.  This lowered the cost basis of the trade to $17.28.

 

All prices given in this update are current as 2:05 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Stocks Weekly recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly