Buy to open the BAC June 15 calls (BAC160617C00015000, $0.54, down $0.04) at current levels.

Dear Momentum Options Subscriber,

I have a New Trade for the portfolio this morning that I want us to get into. I have been talking about the strength in the financial stocks, and I have a bullish trade on Bank of America (BAC) to play the move.


Bank of America (BAC, $15.02, down $0.01)

Buy to open the BAC June 15 calls (BAC160617C00015000, $0.54, down $0.04) at current levels.

Action: I like these call options at current levels, and you can use a Limit Order up to $0.70 to get the best fill.

These are the regular monthly options that expire on June 17, and I will provide the parameters of the trade in today’s Mid-Market Update.

These options are super liquid, as over 3,000 contracts traded yesterday. Open interest is north of 85,000 contracts. I’m using the regular June options that are slightly “in the money” to give the trade more time to work in our favor.

Shares are on the verge of clearing their 200-day moving average, and the 50-day moving average is in a rising uptrend. Resistance is at $15.25-$15.50. Short-term support is at $14.75-$14.50.


All prices given in this update are current as of 10:40 a.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options