Bank stocks are running on empty right now, threatening to reverse their run. And there's not much on the horizon to pick them up.
Earnings weren't that impressive - and they met expectations that had been beaten down. The outlooks weren't strong. Interest rates are starting to roll over, which will take some money away from banks.
When the financials yet again signal to me that they're heading lower, I look for the stock likely to fall the hardest. That's the trade I have for you today.
Check out the full details in the video below...
Trade Details...
We're adding the SKF shares using a limit price of $11.50.
The options trade for the week is to buy to open the Jan. 15, 2021 BAC $25 put using a limit price of $2.40 or less.
Action to Take No. 1: Buy shares of ProShares UltraShort Financials ETF (NYSEArca: SKF) using a limit order of $11.50.
Action to Take No. 2: Buy to open BAC Jan. 15, 2021 $25 put (BAC210115P00025000) using a limit order of $2.40 or less.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.