The Bank of America (BAC) simply isn’t working out.

music selection: “Fourteen Carat Mind” — Glen Watson

On 8JUN2020, I entered a BAC bull call spread at 60 cents per share on the 27/28 strikes.  I had 14 contracts for 840 capital at risk.  The Fed stress tested banks and BAC had a, let’s say, less than glowing result.  Shares took a hit.  Their stress test was in line with peers who fell much less so I was hopeful for a rebound.  Today, I decided the market was not going to give me a gift.  I sold the spread for 11 cents a share.

The trade was in force for 33 days and books a 686 loss on 840 at risk.  It hurts to lose but not all trades will be winners.  I feel it is important to report these losses.  Many options blogs report their winners and just go into radio silence when positions move against them. I feel this is reckless as it leads the reading public to believe options trading is “free money”.   All investing involves risk and you should understand what you are risking before you buy or sell an option.

I have two new trades lined up for Monday morning.  Look for them before lunch.

Devour your prey raptors!

Capitulating on BAC bull call spread

Never miss another opportunity to devour prey!

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