Bank of America Corp. BAC – Fresh Options Idea
We went bullish on BAC yesterday, confident that a rebound after Brexit-related losses could propel a set of options contracts to some sizable intraday gains. We were right on in our assessment, and after both an early morning rip, followed by a pullback and run-up into the close, were presented with multiple quick-strike opportunities.
Each of the two sets of calls we signaled, the BAC Weekly $12.50 and $13 Calls, ultimately provided us with two solid chances each:
$12.50 Calls – 1st Run: .22-.32 (+45%) – 2nd Run: .20-.37 (+85%)
$13 Calls – 1st Run: .08-11 (+37%) – 2nd Run: .05-.12 (+140%)
BAC is gapping up once again [currently trading in the 12.90-range] in the premarket, so it would appear our observed contracts are in line for a chance at another productive session. To reiterate our statement from yesterday’s report, if BAC looks as if it will breach the 13.50-mark, we’ll be looking to roll up our strike price to that level.
Petroleo Brasiliero S.A. (Petrobras) PBR – Options Recap
We recently signaled some longer-term calls in the PBR options chain, and just wanted to take an opportunity to update our readers on the potential gains that have been made possible there.
This past Friday, we signaled the PBR 07/15 $6.50 and $7 Calls and have been pleased with the subsequent activity. Monday’s dip provided an excellent buy opportunity as the $6.50’s traded as low as .30 and the $7’s traded as low as .15. Yesterday, we observed the $6.50’s close at .50, and the $7’s close at .27. That worked out to intraweek gain opportunities of 66% and 80%, respectively.
We’ll want to keep these on our radar, with two weeks yet remaining until their expiration date.
Fresh Options Ideas:
We’re already options-heavy this morning, so we figured why not formulate a couple more ideas to add to our pool of interests:
The Markets are gapping up big again today, and if today’s activity is at all like yesterday’s dip-and-rip scenario, we will want to pay close attention to the SPY Weekly $204-206 Calls. We’ll also be tracking the NKE Weekly $52-54 Calls on the heels of Nike’s post-market earnings beat yesterday.
Extended Watchlist:
USLV, TEF, ORIG, WTW, CPST, WATT