Bull & Bear: Comerica Incorporated
June 15, 2011 3:06 PM
Shares of Comerica Incorporated (NYSE: CMA) are trading lower on the session by 1.69%, trading at $33.82. With shares trading just off of the 52-week low, you have to wonder where it's heading next…
Bulls: Bulls will note that shares have recently tested and bounced off of the 52-week low, at $33.07. With Comerica Incorporated trading so far below the 50-day and 200-day moving averages, this bounce could have legs due to short covering and mean reversion.
Bulls will also note that call volume has been popping lately.
A bullish trader could buy the July $34/36 call spread for a net debit of $0.70.
Bears: Bears will note that the 20-day, 50-day, and 200-day moving averages are all downward-sloping; this is an indication that shares have been under distribution. This also means that Comerica Incorporated will have heavy resistance at many levels above the current trade price.
Bears will also note that shares are not oversold, which means that, if the 52-week low is breeched, a wave of selling could still hit shares.
A bearish trader could buy the July $33/30 put spread for a net debit of $0.48.
Comerica Incorporated is a financial services company. The company operates in four segments: the Business Bank, the Retail Bank, Wealth & Institutional Management and the Finance Division.
The Business Bank consists of middle market, commercial real estate, national dealer services, international finance, global corporate, leasing, financial services, and technology and life sciences. The Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination.
Wealth & Institutional Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and discount securities brokerage services. The Finance segment includes Comerica's securities portfolio and asset and liability management activities.
