DailyPlay – Opening Trade (BAC) Closing Trades (NEM, NEE) – April 11, 2025

Closing Trades

• NEM – 51% gain: Sell to Close 6 Contracts (or 100% of your Contracts) April 17 $45 Calls @ $6.25 Credit. DailyPlay Portfolio: By Closing all 6 Contracts, we will receive $3,750. We initially opened these 6 Contracts on March 18 @ $4.15 Debit. Our gain on this trade, therefore, is $1,260.
• NEE – 57% loss: Sell to Close 5 Contracts (or 100% of your Contracts) April 25 $68 Calls @ $2.19 Credit. DailyPlay Portfolio: By Closing all 5 Contracts, we will receive $1,095. We initially opened these 5 Contracts on March 20 @ $5.13 Debit. Our loss, therefore, is $294 per contract.

BAC Bullish Opening Trade Signal

Investment Rationale

Bank of America (BAC) sets up favorably for a bullish trade idea ahead of its earnings report scheduled for release before the market opens on April 15th. The broader financial sector is about to take center stage with earnings season kicking off this week, led by JPMorgan Chase (JPM) reporting results today before the open. Investor expectations appear cautious following mixed macro signals, while BAC’s discounted valuation, improving net interest income tailwinds, and potential capital return story present an attractive risk/reward setup into the print.

At $35.85, Bank of America (BAC) is consolidating in a tight range between support at $34.19 and resistance at $37.50, a range established following a sharp gap down below its 200-day SMA. This consolidation could set the stage for a breakout, especially if earnings act as a catalyst to push the stock above $37.50, opening the door for a move toward the $41 gap-fill. Bullish Stochastics also point to upside potential, though confirmation is still needed.

Bank of America (BAC) remains a fundamentally sound large-cap bank trading at an attractive valuation discount relative to the broader financial sector. While industry growth expectations are modest, BAC stands out with a compelling mix of earnings power, operating leverage, and healthy profitability metrics relative to peers.

• Forward PB Ratio: 1.16x vs. Industry Average 1.37x  
• Expected EPS Growth: 15.29% vs. Industry Average 13.84%  
• Expected Revenue Growth: 5.80% vs. Industry Average 5.28%  
• Net Margins: 26.63% vs. Industry Average 26.45%  

Overall, BAC’s favorable valuation, above-average growth outlook, and solid profitability create a supportive backdrop for bullish positioning heading into upcoming catalysts like earnings.

The suggested strategy is to establish a bullish position using a bull call vertical spread.

Trade Idea: Buy the May 16th $36/$41 Call Spread 

The short $41 call aligns with the post-breakout target area, offering a defined profit zone if BAC moves higher. This structure provides leveraged upside exposure while limiting downside risk should the stock fail to rally.

BAC – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 11 Contracts BAC May 16 $36/$41 Call Vertical Spreads @ $1.89 Debit per Contract.

Total Risk: This trade has a max risk of $2,079 (11 Contracts x $189) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $189 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to bounce higher off support during earnings announcement.

1M/6M Trends: Bearish/Bearish

Relative Strength: 4/10

OptionsPlay Score: 88

Stop Loss: @ $0.95 (50% loss of premium)

View BAC Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View BAC Trade