This Outperforming Bank Stock Has More Room to Run

By Schaeffer's Digital Content Team | August 07, 2026, 1:42 PM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this BAC commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Bank of America Corp (NYSE:BAC) has spent the last two weeks building on a 1.9% post-earnings gain from July 14, culminating in an all-time high of $62.98 on Monday. The shares are now 10% above their 2006 peak around $55, with the subsequent pullback caught by the 20-day moving average.

Short interest, meanwhile, hit all-time highs in June and is slowly rolling over. There could also be an unwinding of bearish bets in the options pits, where put open interest outflanks call open interest. With implied volatilities (IV) lower than 99% of daily readings, premium is affordably priced in a post-earnings volatility crush.

Our recommended call has a leverage ratio of 13, and will double in value on a 7.3% move from the underlying equity.

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BAC

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Bank Of America Corp

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This Outperforming Bank Stock Has More Room to Run

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