Tuesday, August 4, 2009

PNC Long Calls

PNC Financial (PNC) has been consolidating lower the last few months and largely not participating in the recent rally to the moon. This week it seems to be breaking out above this consolidation. I think you gotta be a buyer of PNC on any retrace back to 37-38, if you can even get that.

I see a move into the low 40s coming with the potential for 44 eventually. Stop out on a close under 36.

Buy the Sept 36 calls for $4.00 or better. If we get a quick move higher you can sell some August otm calls to collect some premium against your long itm calls.

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