10/18 Spread Trade in Bank of America

Yesterday, a spread trade was started with Bank of America. A Nov 16th $29.00 call and a Nov 9th $27.00 put were purchased. The cost of the trade was $0.77 before fees and commissions. The goal of the trade is $2.00. A stop loss plan has been implemented. Some reasons, including a chart are included below.

- Volatility still is large
- Able to purchase a higher put value due to profits taken from previous trades
- Direction of Bank of America still unknown
- Moving averages at 30
- Open interest in the Nov 16th call option is over 75,000









** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment communication on KDK Options trades, email at kdkoptions@gmail.com **