With Cheap Options, This Banking Giant Is Primed For Breakout Trade
Bank of America (BAC) shares are trading with a very low implied volatility rank, indicating that its options are cheap compared with the past year. The article suggests that this environment may be suitable for a breakout trade such as a long strangle, which involves buying an out‑of‑the‑money call and put. It explains the mechanics of the strategy and why low‑IV conditions could enhance its potential payoff.
- ▪Bank of America stock currently has a low implied volatility rank, making its options relatively inexpensive over the last 12 months.
- ▪The low implied volatility environment is presented as an opportunity to execute a breakout trade, specifically a long strangle involving both a call and a put option.
- ▪A long strangle consists of purchasing out‑of‑the‑money call and put contracts to profit from a significant price move in either direction.
- ▪The article was written by GAVIN McMASTER and published on April 28, 2026, highlighting the relevance of options pricing in trade planning.
Opening excerpt (first ~120 words) tap to expand
Options With Cheap Options, This Banking Giant Is Primed For Breakout Trade Licensing GAVIN McMASTER 12:14 PM ET 04/28/2026 Bank of America (BAC) stock is currently trading with a very low implied volatility rank, which means its options are cheap compared with the last 12 months. That could mean it's a good time to look at a breakout trade such as a long strangle. A long strangle is constructed through buying an out-of-the-money call and an out-of-the-money put. The trade……
Excerpt limited to ~120 words for fair-use compliance. The full article is at Investor's Business Daily.
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