BAC has been pretty good to me lately. It has been trading in a nice price zone and I wanted to break down the last couple of trades and why I constantly have BAC on my watchlist as a go-to buy.
First, here is the 1 hour chart:
I know there are a lot of lines on here but they each represent a certain zone. However, the real price zone that I am interested in is this:
I have found that buying calls around $29.20s and puts around $29.50s has been very successful.
Monday Day Trade:
Tuesday Day Trade:
Wednesday Swing Trade:
Thursday Day Trade:
Yep! I have alerted BAC every day this week. The reason is this channel is fairly safe. Now, there were a couple of times where we saw the price reject of intra-day key levels and I cut at 5% instead of riding longer.
Sure, these may not be big gains but they have been a nice consistent profit throughout the week.
Now, what’s interesting is BAC took a nice dump at the close of day today. All financials did. Be careful here. If it bounces off this $29 level and we get a hour candle close above 29.20’s then I feel we’ll be okay for calls again. However, the premiums on the options could be high so play with caution.
If you have never played BAC before there are some important details regarding the options:
-BAC options have high volume.
-BAC options are cheap
-BAC options have very nice delta to price ratio’s
-BAC options have a minimal time decay
The last two options above can be very good if you are able to predict the direction of the price. However, if the price doesn’t go your way you can certainly be down on your trade very fast. This is why I only trade BAC when I find it sitting on key levels plotted out on the chart.
So as a recap this price zone is from $29.20 to $29.50. It can be traded with both Puts and Calls.
Good Luck and Happy Trading!