BAC

Dream__Devourer

Idk but 33% of my port is in BAC and it's paying me quite well

bluehorseshoe87

I bought my first 50 shares of Ford back in July 2008, and around that same time I bought 15 shares of Bank of America. Both survived the Great Recession, both positions have been significantly added to throughout the years. I might not still own the original 50 shares of F, but I have always held F shares. I do still have the original BAC shares though.

fun-vie

I don't totally disagree with your assessment but the only positions I've sold are the bank stocks. They are going to be the first to show weakness. Why? As you point out, credit debt is at a historic high, though charge [off rates are not](https://fred.stlouisfed.org/series/CORCCACBS) and delinquencies[ are not](https://fred.stlouisfed.org/graph/?id=DRCCLACBS). M1 is "an issue" but for the purposes of analyzing dry powder and it's impact on the market I prefer M2 which didn't change due to the feds reclassification of savings accounts. M2 shows that there are several trillion - maybe around 4T +/- 1T in individual accounts which accrued during COVID. This is a pretty substantial amount of cash. There has been a bit of a draw down (about 1T) but I think that is due to people spending their COVID checks and now going back to work. The real question is [who has control of it](https://www.federalreserve.gov/econres/notes/feds-notes/understanding-bank-deposit-growth-during-the-covid-19-pandemic-20220603.html) and how will they spend it. So this IMO is the cushion for the markets. Everyone is calling this "dry powder". It may well be, or it might get spent down if there is a substantial recession. I think when you dig into the inflation data you see the day to day stuff suffering from less inflation now but that certain discretionary categories such as "beer garden" and small food items out of the house as increasing and taking the averages up with them. These are the sorts of things that people with discretionary income buy. There is also the insurance issue - but this will have to be a regulatory fix because in many states it is not legal to drive a car without insurance. Energy is a variable but to some extent the government has control over this with the SPR. More importantly, the White House has control over it. When we look at the American income and expense statement we find that there has been a [huge increase](https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDNdLCJkYXRhIjpbWyJjYXRlZ29yaWVzIiwiU3VydmV5Il0sWyJOSVBBX1RhYmxlX0xpc3QiLCI1OCJdXX0=) (Line 30) in non-mortgage debt service which is starting to suppress discretionary spending. The question is, what does this look like when sliced across the different income ranges? Moving on - unemployment benefits being paid out hasn't really gone up very much over the last year. I think this is the only absolute measure of layoffs and their effect on the economy. The number of new jobs and things may be skewed by "gig" economy type employment though I've found little to indicate that people are really desperate except for U6 which has gone up but not much in absolute numbers. It is possible that people being laid off are taking on lower wage jobs but the hourly and weekly data seem to indicate that wages are keeping pace with inflation at the moment on average. The total increase in prices over the 4 years though is a problem and is unlikely to be fixed without some very large change. Housing is housing - the prices are correcting, they will go back up when rates go down again. Unless you really have to move in the next 5 or 10 years you probably will be fine. Fortunately, after the housing crisis most mortgages in the US are now 30 yr fixed. That said, this is going to limit the mobility of labor in the US which IMO isn't a good thing. Rents will probably go up if commercial loans underlying those properties come due. My thought is this - do rate increases fix any of this? I say no and that they are in the process of crushing the average American consumer. Meanwhile, the capital holders are just fine and still paying the high rents because they can, my question would be what % of the economy are these people in terms of spending? This will give us some idea of how long the charade might last. So the strategy is not to sell it all but to sell off sector by sector. For example, about two months ago I sold off all but one of my bank stocks. Why? The NCO rates are sky rocketing. We could see that before any of the commercial card carriers reported. Sure enough, looking at JPM, BAC we see higher NCO's. Discover recently reported a much higher rate as well. This is an area of risk for them. In terms of absolute values, it's not that bad yet. I think in general the debt markets are easily an area of risk. The other lending markets, auto and mortage as a whole are not bad yet. Also, the higher rates are a drag for the banks to due to interest paid for the deposits. Banks are also not a "favorite" of the market and get punished quickly. I think what we are going to see are continued downward revisions to forward P/E as people just can't spend and get into trouble. So, start looking where the distressed consumer is and the businesses they frequent and that will be where the trouble is. It will expand from there. I would be surprised if this were some overnight cataclysmic crash. But I think you are going to see individual companies posting bad results and slowly and steadily taking the indexes down with them. Despite the dry powder, it is going to be hard to justify high P/E ratios in a what is the beginnings of a distressed economy.

Key-Ad331

I need an entry point for BAC and DIS. Spread your legs, butt cheeks, or open wide bitches. I want in!!

ErinG2021

BAC analyst saying fears of recession vs stagflation over blown. 96% chance economy continues to do well.

MrZwink

its what i do. and you're right the returns of weeklies are higher. but youre also taking more risk. more risk more reward. a goal of 1% is indeed very doable with 2-3 month out options around 0.2 delta. 1% weekly is only around 4.2% per month. i myself target a minimum of 3.5%. but most options you will sell will actually yield closer to 6-8% over these periods. if your goal is 1% per week is your goal. you can probably do that very easily without a lot of micromanagement on transactions. i dont have any scientific studies for you. i am purely talking out of about 15 years experience trading options. but we can definately look at an example. lets take a look at: \* apple jun 21 P 155 (0.18 delta) it will yield you 188 for 1155 margin which is a monthly return on margin of 4.5% which is about 1.21% per week. \* BA jun 21 P 150 (0.19 delta) it will yield you 220 for 1118 margin, which is a monthly return on margin of 6.4% which is about 1,4% weekly. \* BAC jun 21 P 35 (0.19 delta) will yield 38 fpr 274 of margin, which is a return of 4.6% monthly whic is about 1.2% weekly also. these positions are probably just a fire and forget. and need very little management. (which you can do by just setting limit orders) so youre basically talking about 3 transactions for a 3 month period to deploy margin. and then you chill and relax. on top of that, theta is actually strongest around the 2-1 month mark. it slows down when you get closer to expiration for otm options. (i know this sounds counter intuitive, but it really is true), the further otm the harder theta slows in the last month. just be wary of earnings moments. avoid them. write expirations just before earnings.

leviticus04

BAC puts go brrrrrrr

Key-Ad331

BAC needs to keep going down!

leviticus04

puts BAC, AAPL, DAL calls CCL, JD, KR

Atakeoptions

!p BAC

Atakeoptions

!p BAC

Atakeoptions

!p BAC

leviticus04

Metals puts, BAC calls

Atakeoptions

!p BAC

Atakeoptions

!p BAC

Atakeoptions

Die $BAC

Atakeoptions

Need BAC to go down

ssralf

BAC $37c 5/3 is my best play this month but I loaded up on spy calls thurs and fri 

Numerous_Visits

DCA works. I was buying NVDA @140 to get my average down and it worked. Same happened for DIS, MSFT, AMD and BAC.

Cum-Financia1Advis0r

BAC WFC MS UBS FAs are all fucking weak 

Cum-Financia1Advis0r

Listen. They are the Navy Seals of Financial Advisors period. They are the elite. That's why clients go to them and not BAC WFC MS UBS Financial Advisors. 

bentosekai

tears in my eyes, finished my last graded exam for uni and my portfolio is 50% AAPL 50% BAC so it actually went up today

itsnotshade

I regret not getting BAC calls earlier, up 50% today

ssralf

At least my BAC calls worked

Dream__Devourer

What did I say about BAC

fun-vie

It is simple - well, maybe not... the CPI data is showing that some good and services are falling, the basics. The people who still have money and have not cut back spending are fueling inflation in other areas of the market. So from a CPI perspective those people are winning. However, the rate hikes are starting to take their toll. The US Consumer has less discretionary income than last year and interest repayment for things like CC debt is increasing rapidly. And a tricky one is insurance which for some states is mandated for basic things like cars. This will require a regulatory intervention because those consumers can't operate their cars without insurance. Looking at recent earnings - they aren't great. While meeting expectations BAC's top line items were down YoY and cited rates as part of the problem. Additionally every major bank with consumer credit exposure so far has reported substantial increases in NCO's. JPM reported a 185% increase in CC delinquency. We're starting to see regional banks and community banks also reporting some trouble in consumer and commercial loans. Goldman was just fine but they don't dabble in the exciting pot of honey that is consumer credit. So far the dramatic increase in CC delinquency hasn't show up in other lending but it is likely a matter of time. Reading some of the forward looking statements - they are not positive. I suspect this trend will continue. The rate hikes are a bad idea and punishing for a swath of America. Additionally, credit card defaults are also bad for the economy because with a less desirable credit rating, the ability of that consumer to participate in a responsible and economically efficient way is hindered until their rating goes up. It's all bad news from here while rates remain high. Pay attention to Forward P/E's going forward....

IndicationMaterial62

Go to your morning hourly graph… And once you see two red candles back to back… closing at 10 and closing at 11… on a downward trend, take these positions for the Friday that is more than three days away. Stop looking at strike price… Focus on cost of contract… What to pay for Options BAC .10-.20 w 3M in Vol USO .10-.20 w 2M in Vol SPY .25-.30 w 20M in Vol AAPL .45-.80 w 25 in Vol AMZN .60-.80 w 3M in Vol META .60-.80 w 3M in Vol TNA/TZA .60-.80 w 2M in Vol NFLX 1.50–2.00 w 1M in Vol MRNA 2.00-4.00 w 2M in Vol TSLA 6.00-9.00 w 10M in Vol

SomethingBadBruin

What's going on with BAC?

Lost-Cabinet4843

This is what you're betting on right now. And wall street has made their bets and are moving these players accordingly. It is very risky and frankly a little scary at this juncture in the market. But then to make gains you have to do things like this at times. I see more headwinds for the market than I"m used to before banks ran and am very leery of allocating capital back into banks right now. That is me that is nobody else. I can easily be dead wrong and I"m smart with regards to banking and market metrics and also completely ignorant at the same time. There are very smart people making their bets right now. Berkshire owns a lot of BAC at this moment. They bought a while ago so don't take that as a buy signal at all. They dropped 4 percent or so yesterday on earnings and the dust will settle in the next five days or so.

Cum-Financia1Advis0r

BAC WFC MS UBS are fucking weak compared to NTRS

mrtomd

Burned on BAC. All of them are going down...

New-Reaction9183

Yes, BAC

Terckon

At least give the right ticker it’s BAC.

illadelphFlyer

I bought BAC calls at the market open. I'm down 89% on that option today, haha. At this point, I'll just see it through and try to recoup some of my losses.

mrtomd

$BAC was also better than expected. Went down...

ErinG2021

BAC CEO up next on CNBC….expect talk about 10yr treasury rate & # rate cuts….

BoastfulPrudence

Market clearly now immune to JPow's babbling. Sure glad I got scammed by some f\*wit site claiming MS reported Friday. Had no choice but to switch to BAC as a banking play for the pivot to a decade of high interest rates. 36.5c seemed such a good buy Friday.

5uckmyd1ckb1t4

# Bank of America, $BAC, has said that the copper supply crisis is here, per MW.

bentosekai

thank god i sold my BAC LEAPS last month lol

TesticlesSpectacle

BAC puts hitting rn

EuphoricWizard

BAC was pumping premarket on earnings then 📉📉📉📉 on open broootal.

JGM92AG

Thanks, I appreciate your detailed explanation. I was familiar with most of that but had not actually seen it in practice. So, for my example...there seems to be little, to no, material IV movement post earnings, which I'm surprised to see. I had this great fear of a massive IV movement but I'm simply not seeing it for the 5-17 BAC $36 Put. Maybe this is a bad example of a stock which has relatively low IV to begin with. Also, I wonder if there is little IV reaction post earnings for my particular strike date since it is still a month away. Any thoughts on that?

WetFupaCreamyChalupa

Son of a whore. BAC beat earnings n still tanking. Last time I play earnings

fightingwayforward

I need BAC guidance to suck on this call so it tanks 😂

Ill_Try1620

BAC already out

Ill_Try1620

MS and BAC giving us a little hope today

jabronismacker

If MS and BAC miss today that’s a wrap

ShaggyDogLives

BAC

JamesGarrison

BAC?

NihilAlien

~40vol implies an average daily move of ~2.5%. Does BAC typically move 2.5% per day? No. 40vol is high for BAC.

JGM92AG

Question: You mention IV for BAC is quite high. I had (have closed) 5-17 puts and IV earlier today was in the 27% range for $36 strike. When the market sees IV crush....is there any kind of rule of thumb for impact on option pricing? Does "crush" mean 20% drop or 70% drop. I keep hearing IV crush and have seen charts showing the drop....just not sure what to expect. I know this is going to happen regardless of the underlying asset price move (+/-). I'm watching tomorrow to learn, just thought I would ask.

1TalefromTheCryptos

Anyone playing BAC for tomorrow?

fightingwayforward

Are you playing them for earnings? Bought JPM puts and just did the same for BAC

Fnanderss

Fuck it. 1K into BAC calls

Baymax702

!banbet BAC 31 4d

Puzzleheaded_Gear_76

I just want BAC to have a good earnings tomorrow. Probably too much to ask for but fuck I just want 1 thing to hit at least...

Terrible_Champion298

I don’t like them for BAC and would go no deeper than 35.5. BAC is my bellwether for Financial/Banks in general and has not had it bad for 6 months. The last 3 days are the setup for earnings and, I believe, reflect market sentiment. Don’t underestimate BAC.

UnhappyReach

Right now im asking people the same question lol. Later I might buy some overnight yolo puts for Bank of America's earnings tomorrow morning. So BAC is going to hit a record earning and the market will pump tomorrow

BoastfulPrudence

Unless there's good reason to believe BAC has screwed up the pivot in the same way JPM did, 04.19 36.5c look a steal at 0.58. I think BAC will come in closer to GS's sucess than to JPM's fiasco - JPM has been expanding its balance sheet agreesively since 2016, BAC has been carefully pruning, BoM-style.

Antique_Giraffe_3728

Why do I always buy at the worst time? BAC puts when at 36.14

BoastfulPrudence

Just checked through all three sets of ERs for past 5 years and it seems a bit obvious but if BAC posts results closer to GS than to JPM it will be in good shape overall, whereas anything like a JPM-quarter will send it crashing. Obviously this brief analysis looks at percentages rather than overall nominal figures. JPM has been expanding its balance sheet aggressively since 2016 and these results were quite unexpected, whereas up til now BAC has been keeping pace with the progress of GS. Let's see if BAC handled the transition well - it seems to have a sturdy balance sheet management so far.

Safe_Inspection2104

BAC calls for earnings?

BoastfulPrudence

Hey you guys are clever...is it any coincidence that BAC and WFC are at 11.84x and 12.04x while C and GS are at 17.70 and 17.74? I quite like the look of bank stocks after GS this morning.

NY10

I was sure that BAC will drop after ER but GS made me think that may not happen. So I am confused.

Tasty_Occasion_7038

UAL Puts ? And BAC ?

SullyWSMFP

I'm bullish on my current BAC

x_scherer

Do people usually go all in on 1-2 stocks or diversify? Have a few puts on UAL, LUV,JNJ,BAC for this and next week but 1) I don’t see these mentioned in this sub even though they have earnings and 2) I notice people usually go in on a single stock like nvidia or spy directly

Biff1958

!banbet BAC 20 1w

Biff1958

!banbet BAC $20 EOW

cocoa_croissant

You should be getting way more upvotes. JPM and BAC are considered fortresses. Businesses with more than $250,000 also will flee to them. The top comment in this thread is about SOFI offering 4.6%. While that's great for consumers that means JPM offering 0% can invest in risk-free Treasuries at 4.5% while SOFI has to invest in the riskiest trash at 8% to get the same spread. Stuff like subprime auto is already turning to dogshit for them.

cocoa_croissant

You should be getting way more upvotes. JPM and BAC are considered fortresses. Businesses with more than $250,000 also will flee to them. The top comment in this thread is about SOFI offering 4.6%. While that's great for consumers that means JPM offering 0% can invest in risk-free Treasuries at 4.5% while SOFI has to invest in the riskiest trash at 8% to get the same spread. Stuff like subprime auto is already turning to dogshit for them.

3000dollarsuitCOMEON

Price matters. People don't realize that big banks are an almost completely commodity business with individual banks having different weighting in a few different core businesses, and deposit profile being different by bank. Since 2008 crash the industry regulation has completely changed with the introduction of CCAR, Basel3. The company's aren't really comparable to that era without prop trading desks etc. The risk profile and profit profile are completely different. The investors who went from $500 to $5 in $C aren't the same ones who bought for $40. Citi at $35, $BAC in the mid $20 range were stupidly cheap as long as you had confidence that there would be no run on deposits. Easy 15-20% ROE at those prices. Hence the massive run the past 6 months. I bought several LEAP at those levels which are up 200% in very short period. Understanding deposit profile in banks is probably the most important skill. SVB revealed a lingering danger in non diversified regionals which government has jumped on.

justalilsuss

Bought some 0tde $36 BAC calls 

JackInCoolBluz

JPM thots are better looking and more open to unprotected sex than C WFC and BAC thots

Winston3331

Sold my spy 4/16 yesterday for 300 loss, but ain’t no way I hold thru the weekend after this price action. Went all in on BAC for earnings, what we thinking

Winston3331

Sold all my SPY calls with exp on 4/16 and bought BAC and XOM calls 4/19, what y’all think

Winston3331

BAC

PerpetualHillman

C, JPM, BAC, PNC, FITB, ZION calls. Banks about to have a good fucking two weeks.

Winston3331

BAC calls

zg44

BAC options are best way to play bank earnings tomorrow.  Sympathy move will mimic most of the move in JPM/WFC.

LethargicBatOnRoof

I'm basically full port BAC right now, so I'm strapped in next to you. Godspeed regard.

SullyWSMFP

Yo, grab some 1DTE calls on banks announcing earnings next week. Lower IV play. They always make their move with the first banks to announce anyway. I targeted PNC, USB, and BAC.

SullyWSMFP

Got 1DTEs in BAC, PNC, and USB, as well as a couple free TSM 147c that is riding on house money. Am I scared? Yes. Does that make it more fun? Also, yes.

SullyWSMFP

Took 100% profit on my SPY 1DTEs. Back to even from overlevergaing myself yesterday. Feels good man. Picked up some BAC calls for tomorrow cuz they were cheap and will probably run if banks have good earnings tomorrow.

SullyWSMFP

What do you guys think would be the best bank play that isn't announcing earnings tomorrow? Trying to catch a bank without the IV in case JPM and BLK do well tomorrow. BAC, WF?

Evening_Cut4422

If that's what u believe is really happening, all I can say u are seriously about to get fcked.  I am not gonna teach u economics but do look up how regional banks were doing last night. Ticker: MS, WAL, ZION, FITB,C, CMA, BAC and so on. Tell me how all the banks droping 2%-6%isnt indicative of stressful conditions.

Evening_Cut4422

U are better off just shorting small and big regional banks. Zion, WAL, FITB, CMA, C, MS, BAC all of these were down 2%-6% last night u just need 1 good weekly out and u are out.

bdh2067

Yes one investor, in theory, can keep a company afloat. But not for 10% of the company (it borrow your example from BAC where no one entity can own more than 10%).

FishermanWinter4257

Still saying **AMD, VISA, TSM,LSSC, AMAZON, BAC,CARR,** AND TRY WENDYS?? NOT sure on the Wendys deal? I would go **Pepsi** instead. I switched to **T-Bell (**[Now](https://Mpls.Now) addicted to those damn cinnamon things???) because, Wendys damn prices sky- rocketed here in [Mpls.](https://Mpls.Now) Maybe because the jerkoffs burned the store down, in DT during the Floyd riots?? What are others thinking??

7figureipo

I'm regarded, but not that regarded. BAC is trading (mostly) flat. A straddle would almost guarantee a loss. My iron condor idea may as well, but it's slightly less likely 

7figureipo

Think tomorrow I'll play it safe with an iron condor on BAC

JackInCoolBluz

Take out a personal loan at BAC WFC JPM C 

ThinkingOfTheOldDays

BAC up & 10 yr yield down make me think market already knows the CPI print will be in line.

molinasnecktat

BAC full on calls for Friday. CPI coming in cool tmw

PinkZanny

ASML underrated af, also BAC expecting some moves with the earnings🫶🏻

dollarnerd

BAC puts anyone? Historically this stock always fell in value after earnings briefly

1kfreedom

So I have a question for the geniuses. Is BAC a better buy to play earnings this week, even though it doesn't report this week? C and WFC report on the 12th. Here is a chart of WFC, C, BAC, WLF. [https://imgur.com/a/Nak6YEa](https://imgur.com/a/Nak6YEa) They all seem to move together and the earnings date are WFC's. The IVR Rank right now per Tasty Trade is 57.2 (C), 51.1 (WFC), 37.5 (WLF) and 36.5 (BAC). So that seems to indicate IV is higher on C and WFC. Just checked both are at 50% on the weeklies, closest strike. BAC IV is 28%. Or am I overthinking this? Thanks

Cum-Financia1Advis0r

NTRS Navy Seal Financial Advisors are the premier elite Financial Advisors MS BAC WFC UBS Financial Advisors are fucking weak

SomethingBadBruin

I buy AAPL call, they get sued. I buy BAC call, they get sued. Both tank. Will I ever win?

exit_strategy45

Off-the-wall question: Was wondering if there was a hard-and-fast rule about what determines the width between strike prices? I know volume has a bit to play in it, but say for example: BAC/PFE/TFC, etc. have strike prices $0.50 apart, some have $1 apart, while HSY/CBRL/BA, etc. have stock prices $2.50 apart, so forth and so on. Just wondering if, for example, I am interested in options with a $2.50 width, if there was a mechanism to tell which would be which, without having to randomly punch in stock symbols haha. Thanks for your time!