Sledge, I have been long 3000 BAC at 10.51 for the longest time.
Bought it on the way down years ago...Last couple of rallies I made nice cash on some calls.
I did consider exiting the position since any loss incurred on the stock would be a wash on my options profits.- never did it
Now I am a breakeven on the stock and am thinking exactly what you are thinking.
I was thinking some kind of bear spread. Any suggestions?
Sometimes I get trapped into thinking an equity owes me something. I bought the street darlin KEG in the nineteen ninetys for 22. Finally relented and sold on a temporary run to 16. It will not recover to the twenties for some time, so I take what the market gives. There are some large entities that are bullish on BAC. Mr market shook me out in october after I sold puts and bought december calls on it. Would have made money if I had not panicked. Mr. Market also anticipates my moves and beats me by days. With Bac, I do not think it ever took a new high without looking back.
Might not be a bad move to sell calls against your holding and buy some puts. Let it peak a little more, it will go back down at least .25, or a full buck if we get cliffy in the markets as dealtime between Bama and Boner narrows.