Nibbling on bank exposure.

music selection:  “Octopus’s Garden” — The Beatles

With the economic recovery underway and banks unfairly punished, now is a good time to bet on bank stocks.  I’m opening a bull call spread in Bank Of America (BAC) as it has lagged the S&P but is now making up ground.

I bought the 21AUG2020 expiry 27/28 strikes bull call spread for 60 cents a share (14 spreads).  The trade will be in force for about 75 days and yields 67% (560 on 840 at risk), so long as my downside protection of 4.42% is not breached.  That comes out to 785% on an annualized basis.

Devour your prey raptors!

Sharing is caring!

Bull Call Spread with yield up to 785%

Never miss another opportunity to devour prey!

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.