Bank of America (BAC) is rallying following an announcement from the Federal Reserve that the temporary restrictions on dividends and stock buybacks for most banks will end after June 30.
Let’s take profits off the table now before bank stocks have a chance to reverse lower.
Current Stock Price: $38.57
Cash in Hand: $0.43
Action: Buy to close the BAC Mar Week Four (3/26) 37.50 Put
Current Option Price: $0.01-$0.02
Recommended Limit: Set your initial limit order at $0.02, but adjust as needed to close today
Profit: $0.41, or $41 per contract
Rate of Return: 1.1% in four days, or 100% on an annualized basis