Lions.. BAC is a buy here.
You can play this several ways.
Highest risk/highest potential gain is to buy ITM calls with an expiration out 6 months.
Lower risk. Sell OTM puts which expire out 3 months.
Also low risk, set up a credit spread.
Lower risk trades are a EXCELLENT way to make steady gains.. If you are unsure of how to sell puts and or set up credit spreads I have made this easy for you. All covered in my book. Click on the link below…
I cover how to do all this in my book A (Not) So Random Walk On Wall Street.
Think it will make a new high today? What is a reasonable percent profit on this trade in this market? Are we just looking for modest 2-5% or are we headed higher higher to hold out for 25% or more on a trade like a BAC August call option hypothetically bought at 3 points?
Just set up my first ‘sell put.’ One contract = 1 opportunity to sell a put, then I’m done? Or what do you look for here?