Wednesday, March 16, 2011

Goldman: Buy Calls on Citigroup AND Can Bank of America Rise 40%? (C; XLF; BAC)

Citi closed down a nickel at $4.31 and was trading a penny lower after-hours.
The XLF closed at $15.90, down 30 cents.
BAC was down 27 cents to $13.69.
From MarketBeat:
Goldman: Bank Dividends Likely to Surprise to the Upside
...Goldman’s derivatives wizards recommend investors buy April call options on Citigroup and the SPDR FD Financial Sector ETF. Such a strategy, in theory, would provide investors exposure to an upside dividend surprise without requiring a direct investment in equity today. And given how these stocks are getting pummeled today, there’s some wisdom there....MORE
Meanwhile, in another part of Rupert's realm, last Saturday's Barron's Feature story was:
BofA Shares Could Rise 40%