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The Coin Toss Trade - Bank of America

With Bank of America's earnings due Friday, Brian talks about how to game the stock ahead of the results. He feels that financials will have a nice move off these earnings and and we'll get a nice move up. Bank of America off the last 8 quarters has moved 3% so Brian wants to go ahead and replace his stock and go out and buy a call spread of Bank of America to limit some risk. The trade is to buy a Nov. 15 call, pay $1.80 and sell a Nov. 19 call for $0.35. Here you have a net that paid $1.45 and you will start making money at $16.45. You would get called away at 19 but Brian feels in the 15 and 19 call range you will have a nice little profit.

Trade on Bank of America

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