The spotlight this week is on bank earnings and we have found one that has an interesting chart.

We are also still keeping an eye on RTX as it held flat yesterday. We were looking for an uptick to grab some calls and didn’t get a green light. We are going to keep that on the screen today.

The ZM Calls we updated on yesterday shot up as high as 8.80 and landed back down at 7.05. That is still up from $5.40 when we spotted them so if you didn’t grab the win yesterday, definitely lock that in today.

PCG is up from .35 to over .50 when we wrote about that bargain and looks to have the potential to double.

That is definitely a lot to keep an eye on but this bank earnings play is one to put through your own checklist. The potential is big, but it isn’t graceful. Let’s look at the chart and a potential trade.

This salt-of-the-earth hard worker flipped Wall Street on its head. The best thing is that her approach spots stock surges as they are forming, not after they happen. Here are the details and some impressive recent trade results.

Trading into earnings is a very polarized topic. some traders avoid it like the plague and others see it as a golden opportunity. Both are right. The key is measuring it against your own risk management rules and making sure it fits your trading plan. This set up is in the higher risk, higher potential reward category. If it is something you consider, make sure you size your position appropriately and be ready to jump if it turns against you.

BAC is one of the most oversold bank tickers and expectations and earnings per share expectations are lower than last quarter. That downward trend is the risk on this trade but with the bar set so low the potential to out perform is real.

This is a bit of crystal ball but the chart can often foretell what to expect. In this case, the MACD Bullish Crossover and the momentum toward the 200 day MA could mean people who know more than we do are optimistic.

Dec 18 57.50 calls are about 1.20 right now. That is cheap enough to take a small position with your high risk portion of your portfolio and see how it plays out. Earnings are tomorrow morning so if you grab it today, definitely stay tuned.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily