When prices moved as fast as they did a couple weeks ago I had no shot. Basically I got whipped down to nothing on both sides of the trade. Well, you win some and you lose some.

Time value has not been kind to me in this trade. I am closing the call side and making a play for a fairly large decline this week. I got $.06 per share back on those calls so, that means I am down about 35% or so in the trade. That’s not terrible considering the upside potential, but if I don’t see some serious selling this week I will bail completely.

Original Trade Post:

This is kind of a hedge against my position that I posted today on ABX. In that trade, I am clearly quite bearish, but history leans heavily towards a positive reaction to the FOMC announcement. I can be skeptical all I want but it probably makes sense to have a little coverage.

Obviously this isn’t an outright bullish position, but it should profit if the Fed can push banks past resistance. Right now BAC is at its Feb, and April consolidation levels, where I think the stock is going to breakout one direction or the other.

The strangle is actually quite expensive and the only reason I am considering it vs just an out of the money call is that the spread is tight enough to keep costs down.

Chart courtesy Finviz. Click to open larger.

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