Markets
CMT

Trade of the Day: Bank of America (NYSE:BAC)

InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips

To receive further updates on this Bank of America (NYSE: BAC ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today.

BAC is one of the big banks that stands to benefit the most from the Trump presidency. Like the other banks, BAC will certainly benefit from a steepening yield curve and a wider net interest margin, but BAC will likely benefit more than some of the other big banks if the Dodd-Frank Act gets repealed. BAC has had more difficulty than most of the other big banks passing stress tests and gaining approval for its financial plans. This has kept the stock's valuation lower than its peers, but it gives the stock more room to run in the face of a lighter regulatory environment.

BAC is just now bouncing up off of what used to be long-term resistance at $19.86 - which was established all the way back in April 2010. We anticipate the stock is going to rise above this level and continue on toward $21-$22.

'Buy to open' the BAC January (2017) 21 Calls (BAC170120C00021000) for a maximum price of $0.65.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

The post Trade of the Day: Bank of America (NYSE:BAC) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CMT BAC

Other Topics

Stocks

Latest Markets Videos