Then analyzing the options chain of BAC Bank of America Corporation prior to the earnings report this week, I would consider purchasing the 30usd strike price Calls with an expiration date of 2023-9-15, for a premium of approximately $0.83. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Trade closed: target reached
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BAC reached 31.70 after earnings and the calls went from $0.83, when I wrote this article, to $2.18, for a beautiful 2.60X gain! Congrats to those who held the calls!
BAC and many other megacaps are just option killers. More specifically the Earnings call play and options is a pure gambling. They always leave at a price point, a day before earnings call, where technicals point to boom or gloom. So i will wait a week after earnings to see the trend.