BAC Warrants Lower Risk
There are various opinions on the fate and performance of Bank of America (BAC:NYSE), traders are lured to the stock, but many don’t realize that BAC Warrants are also attached to the common shares.
At this point, PSE is not making a market call on BAC. We are merely pointing out that there are two other ways to play the stock. An investment in BAC warrants would require a smaller cash outlay, and increased leverage. However, the downside risk is a lack of liquidity and zero equity in the stock.
By definition, a warrant is security that allows the owner to purchase the underlying equity of the issuer. BAC warrants is almost like an option because it allows the buyer of a particular security to exercise into a predetermined price at a fixed expiration date.
On the sentiment side, BAC CEO, Brian Moynihan is trying to work through Ken Lewis’ botched Countrywide Financial acquisition, he’s also sold half of BAC’s position in China Construction Bank, and while he facilitated a deal with Warren Buffett to regain investor confidence, skeptics still remain in the stock. Shares of BAC still currently remain down roughly 15% for the month of August.
BAC WARRANTS Trading Aggresive
Now at this point you should drop any bias that you have for or against BAC, and just take a peek at these BAC warrants. Only because if the common shares remain newsy and extremely liquid, BAC Warrants will remain a quality trading vehicle for aggressive NYSE buyers and penny stock players a like.
Now to cut to the chase, here are the terms of the BAC warrants in question:
BAC-WTA have a strike price of $13.30 and expire on 1/16/2019. The BAC warrants are even more speculative than the A series, and might be more suited to the aggressive penny stock investor type. These warrants have a strike price of $30.79 and expire on 0/28/2018.
Regardless of your bias, add these two series of BAC Warrants to your watchlist.
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