New Spread Trade in Bank of America

There is a new spread trade in Bank of America. A Feb 1st $27.00 Call and $24.50 Put were purchased for $0.61 before fees and commissions. Stop loss pricing has been set up. Some reasons for the trade are below.

- Earnings next week
- Major resistance level reached at $26.00
- Next resistance at the gap fill of $26.73
- 50 day moving average 26.10
- 3 Month R1 and S1 are 28.90 and 22.86
- 50% price retracement up from $29.00 - $22.66 move
-  Dec 24 - Jan 14 is 100% time value extension from Dec 1 - Dec 24 downturn
- MACD (12, 26) looks toppy in 3 Month chart
- RSI at top of 3 month range


 




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