BAC

Royal-Respond2374

I agree. I actually do that all the time. With WMT and BAC recently. I opened the LEAP options and at the same time I invested a lump sum into those. Having exposure to more than one strategy.

Kaiwa1

Will they tho? Low rates also mean lower lending margins. I ran an analysis on 5 banks (JPM, BAC, C, PNC, WFC), and there doesn't seem to be any correlation between rates and returns. 2 have positive correlation, 2 have negative correlation, and C has basically 0 correlation.

SwankyCy

BAC be like

NotMe357

"BREAKING: The New York Stock Exchange just launched extended-hours options trading, per CNBC. It covers 29 big stocks and ETFs, including Nvidia, $NVDA, Bank of America, $BAC, $SPY and $IWM. Starting Dec. 6, those names will trade 23 hours a day, five days a week." Stress Stress Stress!!! 😩

MfRiddetBannedMe

THE NEW YORK STOCK EXCHANGE JUST LAUNCHED EXTENDED-HOURS OPTIONS TRADING It covers 29 big stocks and ETFs, including Nvidia $NVDA, Bank of America $BAC, $SPY, and $IWM, per CNBC. - Morning session: 7:30 AM to 9:25 AM ET - Late session: 4:00 PM to 4:15 PM ET - Starting Dec. 6, those names trade 23 hours a day, 5 days a week

Legitimate_Risk_1079

BAC | Bank of America - Current Price: $51.23 - Market Cap: ~$355B - Bull Target (12–18m): $65–$70 - Bear Target: $43–$46 - Upside: +27% to +37% - Downside: -10% to -16% - Reward-to-Risk: ~2.4:1 🟢 - Success Probability: 60% - Expected ROI: ~+14% - Forward P/E: ~12x 🟢 - Debt-to-Equity: N/M for bank comparison - CET1 Ratio: 10.9% 🟢 - Cash & Cash Equivalents: $249.6B - Dividend Yield: ~2.5% - Q3 Revenue: $30.0B, +3% YoY - Q3 Net Income: $6.9B 🟡 - Adjusted Net Income: $8.1B - Net Interest Income: $16.4B, +8% YoY 🟢 - Loans & Leases: $1.25T - Deposits: $2.04T - Capital Returned Q3: $8.3B 🟢 - Share Count: 6.92B vs. 7.33B YoY 🟢 - Regulatory Settlement: $1.2B 🔴 - Price Trend: Poor long-term shareholder return 🔴 - 5-Year Price Performance: Only roughly +10% 🔴 - Bull-Case Market Cap: ~$450B–$485B - Comparable Companies: JPMorgan, Wells Fargo, Citigroup - Risk: Moderate - Conviction: 5/10 - Grade: B- Bank of America is one of the largest diversified U.S. banks, with improving net interest income, strong capital generation and aggressive buybacks. The valuation and theoretical reward-to-risk at $51.23 are attractive, but roughly five years of essentially dead-money shareholder performance is a major penalty in my system and prevents BAC from qualifying as a B+ setup.

million_smiles

BAC

empty-bensen

BAC recovering to the price before the laundering news dropped was the easiest option I ever made.

ArkanenCastle

When someone tells you to invest in bonds because they're safe, show them Bank of America's (BAC) bond portfolio and its **$109 billion in unrealized losses**.

URMomPaysFirMyCalls

Sold a BAC put at the bottom today. Made $8. I’m ok with that. Green is great

EngimaGenesis

BAC funding terrorism and ppl bought the dip???

Kung-fu-killa-koala

Sell my BAC (bought today when down 8%), and buy more SNDK. No way it doesn't go past $1600 going into earnings.

TheWestinghouse

Grabbed BAC calls at close. Am I regarded?

Ill-Opinion7696

Looks like big institutional accumulation on BAC today

unwanted_hair

Puts on BAC = screwed

empty-bensen

If BAC thetas by EoD I will be a very wealthy man.

Helpful-Weekend-2224

The fact that BAC is down 8% with positive revenue of 30 billion, yet IBRX is up, never profitable and burning cash like a drunken sailor, tells you everything you need to know.

Comfortable_Mud_4477

I’m in ORCL and BAC calls

solidsneeze

is BAC really being renamed Bank of Mexico?

wiisports101

All in on BAC calls 0dte

davidbigham

papa Buffet dont check the Portfolio plz. Your BAC is down 7%.

Happy-Champion1661

BAC calls they said... huge volume on 60c for next week. lol

DH64

Congrats to BAC put holders

music_is_gud

BAC gets fined 1.2B and drops just 3%? Lol

internetsoci0path

Alright. 50/50 with 10k between these options 145 ORCL Calls 10/23 exp X 227.5 ADBE Puts 10/23 exp ADD on to BAC Puts 10/23, rolled from the ones I'm holding now X 227.5 ADBE Puts 10/23 exp

Super-Activity-4675

I'm pumping BAC right now. calls

octopus_serenader

oh man, what to do about BAC earnings tomorrow after the laundering news

el_chupa_cabra

Remember back in the day when the whole market would tank on bad reports from BAC? Yeah that’s gonna happen again tomorrow.

Miserable-Tie-3436

Just sitting around watching my BAC call drill deep into the Earth's core

Swimming-Dingo-9695

My BAC is around .1

Aggravating-Good4879

wow so glad I exited my BAC calls this morning almost like i had a premonition

roke34442

Puts on BAC. I have no tolerance for money laundering. This is not acceptable.

Helpful-Weekend-2224

BAC news was known for over a week. Who's going to fine over insider trading?

Helpful-Weekend-2224

BAC will turn around fast

Comfortable_Mud_4477

Where is BAC

internetsoci0path

wish I bought more BAC puts

imustbegthequestion

Lololol BofA $BAC is the sanctioned USA bank. I live for this.

Miserable-Tie-3436

Those calls are now cooked. I see that BAC is being fined 1.2 bil for money laundering failures.

goldenlamp

BAC got fined 2 weeks of profit, big deal

Vi0lentByt3

Fines are just fees to do things, jail is the only real penalty and the US only jails poor people for money crimes. BAC calls it is

internetsoci0path

shorting BAC was always the move - they are a scummy bank

internetsoci0path

BAC puts

internetsoci0path

shorting BAC btw

internetsoci0path

BAC puts btw

Specialist-Rice-8541

BLK and BAC what do you think?

Due-Lingonberry-4631

Picked up some BAC calls, 56 strike expiry Oct 30, am I cooked

Worry-Mountain

The bank bit is the one I'd actually pay attention to today, since JPM, WFC, GS and Citi all reported this morning. "Oversold and cheap" doesn't mean much if the reports show provisions climbing. Banks trade on net interest income, credit costs and guidance way more than the EPS headline, so a beat with a soft NII outlook can still go red. If the calls sound fine on consumer credit and NII guidance holds up with the Fed hiking again, then yeah, the cheap-valuation case gets stronger. If provisions jump, cheap gets cheaper. I'd let BAC and MS tomorrow fill in the picture before reading too much into one morning.

internetsoci0path

I think BAC might go -5+%

Ill-Opinion7696

Bought some 3/19/27 $52.5 calls. Think BAC has 10-20% in it

Happy-Champion1661

lol I spent the last 30minutes trying to fill BAC calls and I didn't even realize their earnings are in 2days and not tomorrow

Due-Lingonberry-4631

BAC Oct 23 56/53 call/put strangle, hopefully at a . 30+ delta

Glittering_Dig3798

BAC, so, calls

Glittering_Dig3798

I'm most interested in C and AXP after looking at all the major bank/finance stocks, but ngl I do have an inkling that BAC might be the better play

Due-Lingonberry-4631

Thinking BAC strangles leaning puts ATM ,calls OTM 

Glittering_Dig3798

If you had to buy one on Monday, which one would it be? $C, $BAC, $MA, $AXP, $V

Cav829

They are. But finance is also the type of "wait 10-15 years to get back to your entry point" sector I've witnessed twice in my life. That said, yes BAC's channel since this current breakout has technically not broken with support around $52-$53 IIRC.

Glittering_Dig3798

I also think BAC stinks. Thinking about $C though

imustbegthequestion

I'm hoping $BAC shits the bed.

Harp-Note

Some woman called me a pick me bitch looking for validation yesterday, so I think I'll talk a bit more about stocks like they want. Next week is bank week! Is there anything to look forward to? I saw big volume on way OTM calls for BAC, but I can't get a good read on what I need to keep in mind. :hmmm:

Harp-Note

Saw a lot of volume on BAC calls at the 60 strike. Might give those a chance, but you're right. They're absolutely not worth playing unless you know and are ok with a gamble.

First-Hotel4694

I just posted my trades for today so I'd have something to show all of you and now I can't find them so I'm going to do it again. I started the day out with a buddy for a late breakfast/bullshit session then went and got gas, did some grocery shopping, stopped for a soda and went home where I put the groceries away, read the mail checked on my positions, fixed lunch, came on here and spent an hour or so answering questions/comments and finally decided to trade so as to have an example to use for our later discussions and now I don't where it went so I'm looking to do it again. Okay it worked once again. Take a look and tomorrow I will look to begin explanations of how I cam about those trades. Fair warning I may not have much time as tomorrow is expiration day and my wife is coming home after being away for two weeks. I miss her even if she is my royal pain in the ass I still miss her. https://preview.redd.it/8l1q7btiyauh1.png?width=1304&format=png&auto=webp&s=0a31955467da9fec75a943c4133154b3b7cc84fb |Date|Execution Time|u/L Symbol|Type|Qty|Description|Price|Est. Fee|Est. Comm|Est. Amount|Open/Close| |:-|:-|:-|:-|:-|:-|:-|:-|:-|:-|:-| |10/8/2026|3:32:12 PM|AMD|Bought To Open|1|AMD Oct 16 '26 $547.50 Put|$1.50|$0.01|$0.15|($150.16)|Open| |10/8/2026|3:32:12 PM|AMD|Sold Short|1|AMD Oct 16 '26 $550 Put|$1.68|$0.02|$0.15|$167.83|Open| |10/8/2026|3:24:48 PM|AMZN|Bought To Open|1|AMZN Oct 23 '26 $235 Put|$0.68|$0.01|$0.15|($68.16)|Open| |10/8/2026|3:24:48 PM|AMZN|Sold Short|1|AMZN Oct 23 '26 $237.50 Put|$0.94|$0.01|$0.15|$93.84|Open| |10/8/2026|3:20:59 PM|AVGO|Bought To Open|1|AVGO Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|($78.16)|Open| |10/8/2026|3:20:59 PM|AVGO|Sold Short|1|AVGO Oct 16 '26 $327.50 Put|$0.94|$0.01|$0.15|$93.84|Open| |10/8/2026|3:20:42 PM|AMD|Bought To Open|1|AMD Oct 16 '26 $547.50 Put|$1.65|$0.01|$0.15|($165.16)|Open| |10/8/2026|3:20:42 PM|AMD|Sold Short|1|AMD Oct 16 '26 $550 Put|$1.84|$0.02|$0.15|$183.83|Open| |10/8/2026|3:20:23 PM|AMZN|Bought To Open|1|AMZN Oct 23 '26 $235 Put|$0.69|$0.01|$0.15|($69.16)|Open| |10/8/2026|3:20:23 PM|AMZN|Sold Short|1|AMZN Oct 23 '26 $237.50 Put|$0.95|$0.01|$0.15|$94.84|Open| |10/8/2026|3:20:08 PM|AVGO|Sold Short|1|AVGO Oct 16 '26 $327.50 Put|$0.93|$0.01|$0.15|$92.84|Open| |10/8/2026|3:20:08 PM|AVGO|Bought To Open|1|AVGO Oct 16 '26 $325 Put|$0.77|$0.01|$0.15|($77.16)|Open| |10/8/2026|3:19:47 PM|GOOG|Bought To Open|1|GOOG Oct 16 '26 $322.50 Put|$0.58|$0.01|$0.15|($58.16)|Open| |10/8/2026|3:19:47 PM|GOOG|Sold Short|1|GOOG Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|$77.84|Open| |10/8/2026|3:19:35 PM|GOOG|Bought To Open|1|GOOG Oct 16 '26 $322.50 Put|$0.58|$0.01|$0.15|($58.16)|Open| |10/8/2026|3:19:35 PM|GOOG|Sold Short|1|GOOG Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|$77.84|Open| |10/8/2026|3:19:10 PM|JNJ|Bought To Open|1|JNJ Oct 23 '26 $242.50 Put|$1.23|$0.01|$0.15|($123.16)|Open| |10/8/2026|3:19:10 PM|JNJ|Sold Short|1|JNJ Oct 23 '26 $245 Put|$1.70|$0.02|$0.15|$169.83|Open| |10/8/2026|3:18:55 PM|JNJ|Bought To Open|1|JNJ Oct 23 '26 $242.50 Put|$1.24|$0.01|$0.15|($124.16)|Open| |10/8/2026|3:18:55 PM|JNJ|Sold Short|1|JNJ Oct 23 '26 $245 Put|$1.71|$0.02|$0.15|$170.83|Open| |10/8/2026|3:15:02 PM|AMZN|Bought To Open|2|AMZN Oct 16 '26 $237.50 Put|$0.37|$0.03|$0.30|($74.33)|Open| |10/8/2026|3:15:02 PM|AMZN|Sold Short|2|AMZN Oct 16 '26 $240 Put|$0.52|$0.03|$0.30|$103.67|Open| |10/8/2026|3:13:17 PM|TSM|Bought To Open|2|TSM Oct 16 '26 $432.50 Put|$2.91|$0.03|$0.30|($582.33)|Open| |10/8/2026|3:13:17 PM|TSM|Sold Short|2|TSM Oct 16 '26 $435 Put|$3.40|$0.04|$0.30|$679.66|Open| |10/8/2026|3:12:35 PM|CSCO|Bought To Open|2|CSCO Oct 23 '26 $106 Put|$0.28|$0.03|$0.30|($56.33)|Open| |10/8/2026|3:12:35 PM|CSCO|Sold Short|2|CSCO Oct 23 '26 $107 Put|$0.40|$0.03|$0.30|$79.67|Open| |10/8/2026|3:10:15 PM|BAC|Sold Short|2|BAC Oct 16 '26 $50 Put|$0.18|$0.03|$0.30|$35.67|Open| |10/8/2026|3:03:29 PM|GOOG|Bought To Open|2|GOOG Oct 23 '26 $322.50 Put|$1.39|$0.03|$0.30|($278.33)|Open| |10/8/2026|3:03:29 PM|GOOG|Sold Short|2|GOOG Oct 23 '26 $325 Put|$1.75|$0.03|$0.30|$349.67|Open| |10/8/2026|3:00:34 PM|JNJ|Bought To Open|2|JNJ Oct 16 '26 $247.50 Put|$1.64|$0.03|$0.30|($328.33)|Open| |10/8/2026|3:00:34 PM|JNJ|Sold Short|2|JNJ Oct 16 '26 $250 Put|$2.29|$0.03|$0.30|$457.67|Open| |10/8/2026|2:55:47 PM|NFLX|Sold Short|1|NFLX Oct 16 '26 $74 Call|$0.36|$0.01|$0.15|$35.84|Open| |10/8/2026|2:52:04 PM|NVDA|Bought To Open|2|NVDA Oct 23 '26 $217.50 Put|$1.72|$0.03|$0.30|($344.33)|Open| |10/8/2026|2:52:04 PM|NVDA|Sold Short|2|NVDA Oct 23 '26 $220 Put|$2.21|$0.03|$0.30|$441.67|Open| |10/8/2026|2:51:42 PM|NVDA|Bought To Open|2|NVDA Oct 16 '26 $217.50 Put|$0.89|$0.03|$0.30|($178.33)|Open| |10/8/2026|2:51:42 PM|NVDA|Sold Short|2|NVDA Oct 16 '26 $220 Put|$1.22|$0.03|$0.30|$243.67|Open| |||||||||||| ||||||||||$836.64||

First-Hotel4694

Okay if this works you'll have an example of what I trade. I decided to make some trades today although first I had a late breakfast/bullshit session with a buddy the I got gas, went grocery shopping and bought a soda. Went home put things away read the mail and fixed lunch. While I was home I sort of kept eye on my computer in the other room. I sat down on here and started answering questions/comments for over an hour and then said the hell with it and started trading figured I'd do some trades to show you what I trade and going forward I can show you how I arrived at those trades. So let's see if it will load. It wasn't a very profitable day but I made a little bit of money now comes the hard part hanging onto it. 😂 https://preview.redd.it/xnzdognnwauh1.png?width=1304&format=png&auto=webp&s=7a55bbcc97558612317d8d4f47623c46824012dd |Date|Execution Time|u/L Symbol|Type|Qty|Description|Price|Est. Fee|Est. Comm|Est. Amount|Open/Close| |:-|:-|:-|:-|:-|:-|:-|:-|:-|:-|:-| |10/8/2026|3:32:12 PM|AMD|Bought To Open|1|AMD Oct 16 '26 $547.50 Put|$1.50|$0.01|$0.15|($150.16)|Open| |10/8/2026|3:32:12 PM|AMD|Sold Short|1|AMD Oct 16 '26 $550 Put|$1.68|$0.02|$0.15|$167.83|Open| |10/8/2026|3:24:48 PM|AMZN|Bought To Open|1|AMZN Oct 23 '26 $235 Put|$0.68|$0.01|$0.15|($68.16)|Open| |10/8/2026|3:24:48 PM|AMZN|Sold Short|1|AMZN Oct 23 '26 $237.50 Put|$0.94|$0.01|$0.15|$93.84|Open| |10/8/2026|3:20:59 PM|AVGO|Bought To Open|1|AVGO Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|($78.16)|Open| |10/8/2026|3:20:59 PM|AVGO|Sold Short|1|AVGO Oct 16 '26 $327.50 Put|$0.94|$0.01|$0.15|$93.84|Open| |10/8/2026|3:20:42 PM|AMD|Bought To Open|1|AMD Oct 16 '26 $547.50 Put|$1.65|$0.01|$0.15|($165.16)|Open| |10/8/2026|3:20:42 PM|AMD|Sold Short|1|AMD Oct 16 '26 $550 Put|$1.84|$0.02|$0.15|$183.83|Open| |10/8/2026|3:20:23 PM|AMZN|Bought To Open|1|AMZN Oct 23 '26 $235 Put|$0.69|$0.01|$0.15|($69.16)|Open| |10/8/2026|3:20:23 PM|AMZN|Sold Short|1|AMZN Oct 23 '26 $237.50 Put|$0.95|$0.01|$0.15|$94.84|Open| |10/8/2026|3:20:08 PM|AVGO|Sold Short|1|AVGO Oct 16 '26 $327.50 Put|$0.93|$0.01|$0.15|$92.84|Open| |10/8/2026|3:20:08 PM|AVGO|Bought To Open|1|AVGO Oct 16 '26 $325 Put|$0.77|$0.01|$0.15|($77.16)|Open| |10/8/2026|3:19:47 PM|GOOG|Bought To Open|1|GOOG Oct 16 '26 $322.50 Put|$0.58|$0.01|$0.15|($58.16)|Open| |10/8/2026|3:19:47 PM|GOOG|Sold Short|1|GOOG Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|$77.84|Open| |10/8/2026|3:19:35 PM|GOOG|Bought To Open|1|GOOG Oct 16 '26 $322.50 Put|$0.58|$0.01|$0.15|($58.16)|Open| |10/8/2026|3:19:35 PM|GOOG|Sold Short|1|GOOG Oct 16 '26 $325 Put|$0.78|$0.01|$0.15|$77.84|Open| |10/8/2026|3:19:10 PM|JNJ|Bought To Open|1|JNJ Oct 23 '26 $242.50 Put|$1.23|$0.01|$0.15|($123.16)|Open| |10/8/2026|3:19:10 PM|JNJ|Sold Short|1|JNJ Oct 23 '26 $245 Put|$1.70|$0.02|$0.15|$169.83|Open| |10/8/2026|3:18:55 PM|JNJ|Bought To Open|1|JNJ Oct 23 '26 $242.50 Put|$1.24|$0.01|$0.15|($124.16)|Open| |10/8/2026|3:18:55 PM|JNJ|Sold Short|1|JNJ Oct 23 '26 $245 Put|$1.71|$0.02|$0.15|$170.83|Open| |10/8/2026|3:15:02 PM|AMZN|Bought To Open|2|AMZN Oct 16 '26 $237.50 Put|$0.37|$0.03|$0.30|($74.33)|Open| |10/8/2026|3:15:02 PM|AMZN|Sold Short|2|AMZN Oct 16 '26 $240 Put|$0.52|$0.03|$0.30|$103.67|Open| |10/8/2026|3:13:17 PM|TSM|Bought To Open|2|TSM Oct 16 '26 $432.50 Put|$2.91|$0.03|$0.30|($582.33)|Open| |10/8/2026|3:13:17 PM|TSM|Sold Short|2|TSM Oct 16 '26 $435 Put|$3.40|$0.04|$0.30|$679.66|Open| |10/8/2026|3:12:35 PM|CSCO|Bought To Open|2|CSCO Oct 23 '26 $106 Put|$0.28|$0.03|$0.30|($56.33)|Open| |10/8/2026|3:12:35 PM|CSCO|Sold Short|2|CSCO Oct 23 '26 $107 Put|$0.40|$0.03|$0.30|$79.67|Open| |10/8/2026|3:10:15 PM|BAC|Sold Short|2|BAC Oct 16 '26 $50 Put|$0.18|$0.03|$0.30|$35.67|Open| |10/8/2026|3:03:29 PM|GOOG|Bought To Open|2|GOOG Oct 23 '26 $322.50 Put|$1.39|$0.03|$0.30|($278.33)|Open| |10/8/2026|3:03:29 PM|GOOG|Sold Short|2|GOOG Oct 23 '26 $325 Put|$1.75|$0.03|$0.30|$349.67|Open| |10/8/2026|3:00:34 PM|JNJ|Bought To Open|2|JNJ Oct 16 '26 $247.50 Put|$1.64|$0.03|$0.30|($328.33)|Open| |10/8/2026|3:00:34 PM|JNJ|Sold Short|2|JNJ Oct 16 '26 $250 Put|$2.29|$0.03|$0.30|$457.67|Open| |10/8/2026|2:55:47 PM|NFLX|Sold Short|1|NFLX Oct 16 '26 $74 Call|$0.36|$0.01|$0.15|$35.84|Open| |10/8/2026|2:52:04 PM|NVDA|Bought To Open|2|NVDA Oct 23 '26 $217.50 Put|$1.72|$0.03|$0.30|($344.33)|Open| |10/8/2026|2:52:04 PM|NVDA|Sold Short|2|NVDA Oct 23 '26 $220 Put|$2.21|$0.03|$0.30|$441.67|Open| |10/8/2026|2:51:42 PM|NVDA|Bought To Open|2|NVDA Oct 16 '26 $217.50 Put|$0.89|$0.03|$0.30|($178.33)|Open| |10/8/2026|2:51:42 PM|NVDA|Sold Short|2|NVDA Oct 16 '26 $220 Put|$1.22|$0.03|$0.30|$243.67|Open| |||||||||||| ||||||||||$836.64||

Spac55

When Fed want higher interest rate & collapse economy even remain silent at 10 yr 5.33%, all media appearances AI-vibe collapse next. At extreme high leverage debt, options gambling is routine nowadays. Q3-earnings time start with banks just days away, $C $BAC $JPM $GS $MS $XLF

Useful-Ad8923

Puts on COP BAC UBER

HystericalSail

Happy to have distributed a third of my fixed income the last time this BAC.PRQ thread came around. Looks like the cheap is going to keep getting cheaper, at least for now. My biggest concern is not the credit risk of these issues. Including Google's callable debt here, it's what I was looking at. My fear is 6%+ inflation outpacing these returns for years, giving me a positive nominal return but a very negative real return after I pay the tax bill. So far U.S. leadership hasn't demonstrated any interest in taking action to tame inflation. In fact, just the opposite. I think I've talked myself into equities being the only game in town, a TINA trade. Companies that can continue to hike prices, to earn in inflated dollars are where I want to be.

Embarrassed-Bank2835

Preferreds are interesting here, but I’d be careful treating the move back to $25 par like guaranteed upside. If rates stay high longer, or credit spreads widen, they can sit below par for a long time. For something like BAC.PRQ I’d look at current yield, call terms, duration/rate sensitivity and how comfortable you are holding through price volatility. AGM.PRG is interesting too, but I’d still separate “government sponsored” from an actual explicit government guarantee. I’d also compare both against Treasuries, investment-grade bonds and short-duration income options on an after-tax/risk-adjusted basis. A 7% yield sounds great until you realize how much extra duration or credit risk you’re taking to earn the additional spread. For me the yield is only half the trade. The bigger question is what has to happen for the principal to recover toward par.

doctah_Y

Novice question, how does one buy a Microsoft corporate bond or a preferred BAC stock? I don't see it on Schwab

BobtheChemist

As stated elsewhere else here recently, the BAC prefereds are long term, if not perpetual, and thus not likely to be called any time soon. I like the AGMpG ones much better, as somewhat backed by the government. Lots of REITS and CEFs have higher yields, but most of those are quite risky. Good luck.

ScheduleSame258

eli5.. BAC.prq trades at $16, callable at $25. Gives a dividend. Best case: hold until called @$25 or sell Worst case:? What am I missing?

FullyPinkManifesto

Been rotating through preferreds myself for a bit now and your picks arent bad at all. Farmer Mac is one of those weird little corners of the market nobody talks about until they dig into it, their preferreds held up shockingly well through some ugly stretches. The BAC one feels like more of a rate play than pure income, which is fine if youve got the patience for a possible round trip on price. That Microsoft bond comment is interesting because youre basically betting the private sector can outlast the public balance sheet, which historically has been a decent trade more often than people want to admit. 6% from a name like that in this environment feels almost too clean, like theres a catch buried in the duration or the call schedule. The thing most folks miss with these is the reinvestment risk if rates actually do roll over. You lock 7% today and three years from now everything else is paying 4.5, suddenly that par call looks a lot more likely. Still, for a chunk of a portfolio you dont need to touch, hard to argue with investment grade preferreds at these discounts.

Tiddlychinks

Yes but it’s not as good as measuring intoxication as a breathalyzer for BAC.

504Kris

Thinking of shorting BAC because of Oracle.

SteakEater137

I like how BAC is being punished for giving realistic forecasts about the oil situation. The market will beat you down if you dont portray blind euphoric optimism

Solid-Mood9571

BAC dip

Crema2713

BAC calls for a swing trade

Crema2713

might get 90 calls on BAC since they hiking rates

SDOT_yolo

So what are the chances of my $BAC calls being green tomorrow?

SDOT_yolo

Well calls are stupid and puts are obvious.... so what I'm hearing is $60 calls on $BAC?

tragedywasforesworn

Who's holding BAC 60p till friday Should I take profit or wait for mid 50s

Specific-Chemist-353

What if you’re wrong and they hold tight until 10/27? Picking up naked calls on BAC could be interesting. No ifs, ands, or buts about that, except my regardedness.

CantaloupeSea48

BAC pulled the rug

hayleybts

why would BAC betray me like this???????

Supertainment

Bank of America $BAC CEO Brian Moynihan says Q3 sales and trading revenue is expected to be roughly flat year over year. He also expects Q3 investment banking fees of about $1.6B to $1.8B.

fredditf

BAC CEO Brian Moynihan says Q3 sales and trading revenue is expected to be roughly flat year over year. He also expects Q3 investment banking fees of about $1.6B to $1.8B.

Muddykip

Tf happened to BAC and the other banks in the past 30 minutes

JuanPabloElTres

Can you elaborate on shorting same issue stocks - e.g., how you identify which ones to short and then when to exit. I have notice that some of the BAC preferred are reading at different yields for the same priority preferred - e.g., BACPRP versus BACPRQ. Seems like some they're issued by the same company and have same debt seniority the market should be giving the same yield. Seems like there might be an arbitrage opportunity though although I'm not sure how to capitalize on it.

DennyDalton

If the current yield is attractive to you and you are willing to hold even if rates continue up, go for it. You can bump that yield up by swapping preferred issues, though that's harder to do when preferreds are being routed - in this case (BAC-O, BAC-P, BAC-Q and BAC-S). I own BAC-O and BAC-Q. On down days, I short as much as 50% of my preferred holdings with same issuer preferreds. In this case, that's BAC-M and BAC-N. Shorting isn't for someone without experience and discipline. The shorting reduces (not eliminates) the loss of principal on my long positions and I take those short term gains and buy more. Avoid the high borrow rate stocks and get out of the way of ex-div dates because short sellers pay the dividend to the lender.

I_killed_the_kraken

If you expect interest rates to rise, which is what the data from FedWatch and Polymarket suggest, there are several options: * Banks: $JPM; $BAC; WFC; $USB. * Brokerage firms: for example, $SCHW. * Insurance companies: $ALL; $PGR. * BDCs with predominantly floating-rate portfolios: $ARCC; $MAIN.

hugh2018

I’m not ignoring your data points; they just don’t prove the price math you think they prove. You are entitled to your own opinion, but you aren’t entitled to your own facts. Let's address the exact facts you cited and look at what the math actually dictates: Fact 1: The 10-year Treasury has stayed under 5% for most of the last 25 years. That is true. But the 10-year Treasury sitting under 5%—say, at 4.0% to 4.25% in a normalized, non-recessionary 3% Fed funds environment—does not price BAC-PRQ anywhere near $21 or $25. Fact 2: A 6.75% preferred yield today is historically elevated. Agreed. That makes it an attractive yield to clip if you want high income. But the fact that 6.75% is high doesn't mathematically unlock a 33% to 60% capital gain unless yields collapse to levels unseen outside of zero-rate regimes. Here’s the math that you can’t explain away. BAC-PRQ pays a fixed coupon of $1.0625. For the price to hit $21, the market yield must drop to 5.06%. For it to hit par ($25), the market yield must drop to 4.25%. If a standard investment-grade bank preferred demands a \~175 bps credit spread over the 10-year Treasury, the 10-year yield would need to drop to 3.31% just to see $21, and down to 2.50% to see $25. The 10-year Treasury did not average 2.50% over the last 25 years outside of post-GFC ZIRP and the 2020 pandemic shock. Your facts support the thesis that 6.75% is an attractive entry point for income. What they do not support is the thesis that a return to a standard, non-crisis interest rate environment hands you a 33% to 60% equity-like capital windfall. The pricing formula is fixed: Price = 1.0625/market yield. The yield has to go where the math says it has to go to produce those dollars.

hugh2018

No AI needed, just basic bond math that you keep ignoring. I’m pushing back because your ideas are wrong and I’ve given you plenty of detailed reasons why, yet you persist. It’s as though you think repetition will make these ideas come true. Nobody is arguing whether 6.75% is historically elevated. The entire issue is your claim that you get an equity-beating 60% capital gain (to $25) or a 33% gain (to $21) simply by waiting for rates to normalize to a 'neutral' 3%. Let’s look at the actual mechanics: BAC-PRQ pays a fixed $1.0625 per year. For its price to reach $25, the market yield must fall to 4.25**%** ($1.0625 / $25). If preferreds carry a standard 150–200 bps credit spread over the 10-year Treasury, the 10-year yield would need to drop to 2.25%–2.75% just for BAC-PRQ to trade at par. That isn't a 'neutral 3% policy rate' environment; that is near-ZIRP or deep recession pricing. For BAC-PRQ to trade at $21, its yield must be 5.06% ($1.0625 / $21). If the Fed sits at a neutral 3%, a normal upward-sloping yield curve puts the 10-year around 4.0%–4.25%. Add a normal 175 bps bank preferred spread, and the market demands \~5.75%–6.0% yield on this paper—pricing it around $17.70 to $18.50, not $21. If your thesis is simply: *'I want to lock in a 6.75% qualified dividend on a high-grade bank and hold it indefinitely,'* that's a completely rational income trade. Where the argument falls apart is marketing it as a lower-risk alternative to the S&P 500 with a baked-in 33% to 60% capital upside under normal economic conditions. You take unhedged duration and subordinated Tier 1 capital risk, with the upside strictly capped at $25 if rates plunge, and zero growth to fight inflation if they don't. That's not broken data; it's just the structural reality of the instrument.

hugh2018

I understand your math perfectly; what you are missing is that your math relies on broken macroeconomic and structural assumptions. You are assuming that if the Fed cuts the policy rate to a 'neutral' 3%, the 10-year Treasury automatically sits at 3%, preferred credit spreads magically contract to zero, and BAC-PRQ immediately trades at a 5% yield ($21.24). In reality, a 3% neutral Fed Funds rate in an un-inverted, normal upward-sloping yield curve implies a 10-year Treasury yield around 4.0% to 4.5%, not 3.0%. Subordinated perpetual bank paper historically commands a 150–250 bps spread over the 10-year. Add a normal 175 bps spread to a 4.0% 10-year, and BAC-PRQ yields 5.75%—pricing it at $18.47, not $21.24. BAC-PRQ briefly touched $21 because markets aggressively priced in imminent recession cuts and near-zero rates, with the 10-year dropping toward 3.6%. The moment growth held up, that price evaporated. Claiming $21 requires either an inverted curve, an emergency return to ZIRP, or credit risk disappearing from bank capital structure. That is why framing this as a routine 'neutral rate' outcome is fundamentally flawed. You keep treating this like a bond that gets pulled toward par. Because there is no maturity date, there is no redemption anchor. If yields stay higher for longer, the mark-to-market loss is permanent. If rates drop to zero, BofA calls the shares at $25, permanently capping upside. If rates rise to 6%+, there is no floor. You absorb unlimited downside for strictly capped upside. You equate BofA's size with safety, ignoring that preferreds are explicitly engineered as loss-absorbing Tier 1 regulatory capital. In stress scenarios, preferred dividends are non-cumulative and can be halted long before senior debt defaults. Equities absorb volatility in exchange for growing earnings, dividend hikes, and pricing power. A perpetual fixed $1.0625 coupon has zero growth, guaranteeing purchasing power degradation over a 10- to 20-year horizon. You admitted this is essentially a rate-cut duration bet. Taking junior bank credit spread risk, non-cumulative dividend risk, and call risk to express a duration thesis is an uncompensated risk trade-off.

hugh2018

You are moving the goalposts. Your original post claimed a 60% upside to $25 based on waiting out interest rate cuts. Now that the duration and yield math has been laid out, the thesis has shrunk to a hypothetical move to $21. At a 4.25% coupon ($1.0625/yr), BAC-PRQ trading at $25 means a yield of **4.25%**. For a perpetual, subordinated bank tier-1 issue to yield 4.25%, the 10-year Treasury would have to sit near 2.0%–2.5% (assuming a historical 150–200 bps credit spread). That is not a "neutral rate" environment; that is emergency zero-interest-rate policy (ZIRP). No one said the S&P 500 doesn't have volatility. The point is that equities offer earnings growth, dividend increases, and inflation hedging to compensate for volatility. Preferred stock gives you equity-subordinated balance-sheet risk with a permanently fixed coupon. If inflation persists and the long end stays elevated, your purchasing power decays forever because there is zero maturity date to redeem your principal. When the economy weakens and the Fed cuts short rates, credit spreads on junior bank paper widen. That is why long-rate drops do not transfer 1:1 into preferred share price gains. If you like BAC-PRQ for high current cash flow in a taxable account, that is a defensible income strategy. But marketing it as an asymmetric play with "60% upside and less risk than equities" ignores the structural mechanics of fixed-rate perpetual preferreds.

hugh2018

You are still missing the mathematical reality of fixed-rate perpetuals and conflating credit default risk with duration and structure risk. The math doesn’t work for $21: BAC-PRQ pays a fixed coupon of 4.25% ($1.0625/yr on a $25 par). For the price to hit $21, the market yield on this issue must fall to \~5.06% ($1.0625 / $21). Bank preferreds historically trade at a 150–250 bps spread over Treasuries to compensate for subordination and perpetual duration. If the 10-year drops to the Fed’s neutral rate of \~3.0%, a normalized spread puts BAC-PRQ yielding 5.0%–5.5%, pricing it between $19 and $21 *at best*. You don't get a 33% gain just because rates normalize; you need long yields to collapse back to near-zero ZIRP conditions. You’re treating the 6.75% current yield as free money while you wait. If the 10-year yield moves from 4.9% to 5.5%—or if long-term inflation expectations shift higher and the yield curve steepens—a zero-maturity fixed paper with infinite duration will drop another 15%–20% in price. That completely erases 2–3 years of your dividend income in mark-to-market losses. The S&P 500 isn't risky just because companies go bankrupt; it’s an asset class where companies grow earnings, hike dividends, and buy back shares to combat inflation. BAC-PRQ has none of that. You take full subordination risk (it is Tier 1 capital, meaning common dividends get cut first, but preferreds are explicitly engineered to absorb balance-sheet pain), zero dividend growth forever, and zero maturity guarantee, all for an equity-like spread. If macro conditions push long yields significantly lower, BofA calls it at $25—capping your upside. If long yields stay elevated or rise, you are locked into a sub-par yield on capital you cannot pull out without selling at a loss. If your thesis is purely "the 10-year Treasury is peaking at 4.9% and heading lower," buying actual long-term Treasuries (like 20+ year bonds or TLT) gives you the exact same interest-rate upside without credit spread risk, non-cumulative deferral risk, or call risk. Why take junior bank capital risk for a trade that is purely an interest-rate duration bet?

hugh2018

I think you’re confusing** **perpetual preferred stock with a standard maturing bond, misunderstanding** **duration risk, and ignoring the asymmetry of embedded call options. You’re looking at the $25 liquidation preference and assuming the stock must eventually return to $25 if you simply wait. Bank of America Preferred Series Q (BAC-PRQ) is perpetual—it has no maturity date. Bank of America has the *right*, but zero obligation, to redeem it at $25. A company only exercises a call option when prevailing interest rates have plummeted so low that it can refinance cheaper. If rates remain normal or elevated, the issuer will happily leave the shares outstanding forever while they trade at a steep discount. Because perpetual preferred shares have no maturity date, their effective duration is immense. As the first commenter rightly pointed out, their prices are often more sensitive to long-term interest rate shifts than 30-year Treasuries. Preferred stock offers asymmetric downside. If rates surge, the price crater has no floor; there is no maturity payout at $25 to pull the price back to par over time. If rates plummet, the price upside is strictly capped around $25 because the issuer will simply call the shares away. In your later comment you said that if the Fed cuts rates to 3%, the stock will automatically see 30% to 40% capital appreciation. The Fed controls the overnight rate; preferred shares price off long-term corporate credit spreads and long-term Treasury yields. If the yield curve un-inverts or steepens (long rates stay at 4.5% even while short rates drop), perpetual preferreds will see very little price movement. You stated this offers "less risk and volatility than the S&P 500" because Bank of America is a top-tier bank. Preferred stock is subordinate to all senior debt and tier-2 debt. In a systemic banking crunch or capital-adequacy mandate (as seen in recent regional bank shocks and Credit Suisse's AT1 wipeout), bank regulators can force banks to defer or eliminate preferred dividends to preserve Tier 1 capital. Bank of America common stock can fall 40% while paying its dividend, but preferred holders take direct volatility with none of the infinite earnings upside that equity owners enjoy. You are essentially treating a perpetual, call-capped, high-duration instrument as a guaranteed equity-like compounding machine. Preferreds can provide a steady income stream, but banking on a 60% capital gain without factoring in call asymmetry or perpetual duration is fundamentally flawed.

furiouschads

BAC PRQ is callable. Consider BAC PRL, which is not callable.

HystericalSail

You can pretty much pick your duration. The highest yielding ones are the ones furthest out, to 2075. Well, highest in USD. [https://www.tradingview.com/symbols/NASDAQ-GOOG/bonds/](https://www.tradingview.com/symbols/NASDAQ-GOOG/bonds/) Looks like the ones I'm eyeing are now yielding 6.6%, and 13% discount to par. The profit potential for trading over par in case rates drop is not there since they're callable. Anyway, BAC.PRQ is now on my radar. I've pretty much decided on distributing TLT, but not which other fixed income I'll rotate into. I don't expect my hedges to outperform the S&P long term. That's why they're hedges. They are a cost, like any other insurance.

Legitimate_Height424

Curious to see what people say...from what I have read, bonds are attractive if you think rates will be meaningfully lower in the future (or if you are in retirement and want that yield). In the current situation, it looks like the Fed won't be able to meaningfully cut or raise the rates (sticky inflation, and high government debt issuance) for the foreseeable future (hence yields rising as much as it has). Add demand dropping for bonds, and it goes even more against your thesis or low rates in the future. Also, Bank of America has no obligation to buy BAC-PRQ back at $25.00. They will only call the shares if they can issu*e* new preferred shares at a lower interest rate...which means lower than the 4.25% they borrowed at in 2021....which with the premium preferred stock carry, is more like a 2-3% fed fund rate. Answer: Yields would have to go much higher to start attracting equity investors.

2QuarterDollar

He needs to find a new gimmick a new narrative. Last year it was tariffs, then Iran, now it looks like he wants to play a game with the Fed. But the midterms are also coming up so I can see him attacking banks again because of high interest rates (tickers: COF, SYF, JPM BAC) he might attack or praise a specific regional bank as well. That’s were the options plays could be short term. He might also play a game with big pharma cause TrumpRx is not really taking off. And the insurance claimers like UNH, CNC, Humana might catch a stray here and there before the midterms

YaDunGoofed

I had 3k in Tesla at a market cap of 3b. I had 6k in BAC when it cost $5 I had 5k in Apple when its market cap was in the 200-300b range I only had 20k, so that was an educational opportunity cost. I have 0k of that left because I spent it all

SteakEater137

Ah yes, BAC finally pumping based on news that its joining with other banks to make a "stablecoin" pegged to the US dollar. I was just thinking that we need another redundant version of the dollar that's more expensive. Seeing how high inflation is, I have no doubt whatsoever that this stablecoin will have an excellent return on investment. Who wouldnt want to invest money into something that at best is just worth the currency you already use?