11:20am (EST)

Sometimes you get in a zone and it feels like you know how a stock will trade like the back of your hand.  Bank of America (BAC, $16.83, up $0.41) is one such stock and here is what I said last night in the Trade Updates for Bank of America:

“The November 17.50 calls (BYOKZ, $1.40, down $0.16) and the November 20 calls (BYOKT, $0.66, down $0.12) could be used as a replacement for the 15’s.  Target $1.25 as an entry price for the 17.50’s but they could be considered a buy up to $1.50 if BofA runs again this week.  For the 20’s set a limit price of 55 cents and don’t pay no more than 75 cents.”  (END)

Well, if you followed that game plan, you are up nearly 50% in less than two hours.  The November 20 calls (BYOKT, $0.77, up $0.11) opened at 50 cents so if you had set your limit orders before the market opened, you should have gotten filled.  The stock hit a low of $16.16 this morning…

The November 17.50 calls (BYOKZ, $1.58, up $0.18) opened at $1.25 so you should have been filled right around this area as they traded to a low of $1.23 and the difference in the bid and asking prices are only a few cents.

It’s nice to get filled at your limit prices and the opportunities to make money in this stock right now are incredible.  Expect to see continued flucuations in the shares but BofA is showing all signs that it wants to go to $20.

The Fed meetings will also have an impact on this trade so we will have to see how things shake out. 

Rick@MomentumOptionsTrading.com