Bank of America (BAC) PriceWatch Alert Up To 35.16% Downside Protection

Posted: Wednesday, June 24, 2009 8:07 AM EDT

Bank of America (NYSE: BAC) closed yesterday at $12.23. So far the stock has hit a 52-week low of $2.53 and 52-week high of $39.50. Bank of America stock has been showing support around 11.69 and resistance in the 12.71 range. Technical indicators for the stock are Bullish and S&P gives BAC a neutral 3 STAR (out of 5) hold rating. BAC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 9 covered call (BYO BI) for a net debit in the $7.93 area. That is also the break even stock price for this trade. This covered call has a 241 day duration, provides 35.16% downside protection and a 13.49% assigned return rate for a 20.44% annualized return rate (comparison purposes only). Bank of America has a current annual dividend yield of 0.30%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (BAC)