The automated Quantcha Trade Ideas Service has detected a promising Bull Call Spread trade opportunity for BANK OF AMERICA CORP (BAC) for the 17-Nov-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BAC was recently trading at $23.77 and has an implied volatility of 23.78% for this period. Based on an analysis of the options available for BAC expiring on 17-Nov-2017, there is a 38.18% likelihood that the underlying will close within the analyzed range of $23.47-$28.29 at expiration. In this scenario, the average linear return for the trade would be 62.01%.

Price target: Zacks Research has updated their six-month price target for BAC to $25.71. This price target is a consensus price created from the price targets published by 14 participating analysts whose targets ranged from $22.00 to $28.00.

Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for BAC has been updated to 1.9, which indicates a buy consensus from analysts. Sentiment has moved from 1.74 to 1.80 to 1.90 over the past three months.

Trade approach: The difference between the current price for BAC and the mean price target is $2.23, which represents a 8.18% move (17.28% annualized). Since the 180-day implied volatility for BAC is 24.11%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.

Upside potential: Using this bullish strategy, the trade would be profitable if BANK OF AMERICA CORP closed at or above $23.21 on 17-Nov-2017. Based on our analysis, there is a 53.91% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.