2:10 p.m. (EST)
ACTIONS:
Buy Aruba Networks (ARUN, $19.24, down $0.20).
Sell to open the ARUN November 20 calls (ARUN141122C00020000, $1.20, down $0.15).
Buy Bank of America (BAC, $16.23, up $0.15).
Dear Weekly Wrap Subscriber,
I have several New Trades for the Weekly Wrap this afternoon. One of the trades is a straight-up stock trade for now, while the other is a covered call trade.
Buy Aruba Networks (ARUN, $19.24, down $0.20).
Sell to open the ARUN November 20 calls (ARUN141122C00020000, $1.20, down $0.15).
I’m recommending shares of Aruba Networks at current levels and suggest selling the ARUN November 20 calls to lower the cost basis of the trade to $18.04.
If the position is “called-away” by mid-November, the trade will make 11%.
Buy Bank of America (BAC, $16.23, up $0.15).
I have been waiting for a pullback in BAC all year, but shares have continued their march towards $20. This has been a favorite trade of mine for a few years now.
I will provide a lengthier update in Monday’s Weekly Wrapand will wait to possibly sell call options against the position.
Every new Weekly Wrap 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.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Weekly Wrap