To receive further updates on this Bank of America Corp (NYSE:BAC) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today. 

My indicators are giving bullish readings this week, an upgrade from last week’s bearish sell signals. Additionally, as money managers allocate capital to their funds at the beginning of the new month, this coming week should have a bullish bias, so we are squarely in the bullish camp.

I will say, though, that there are some signs that we could be approaching a longer-term top for the market. One thing that is positive, however, which suggests that the market should continue to rally or at least stay near current levels, is that we do not have an inverted yield curve here in the U.S. The yield curve is actually steepening in the U.S. this week following the positive results of the Fed’s stress tests on the big banks, which is a good sign.

Almost all of the banks passed; I don’t put much faith in these stress tests. But I do think financials have plenty of room to move higher. So, as long as there’s a bullish backdrop, we’ll capitalize on it with these call options on Bank of America Corp (NYSE:BAC).

Buy to open the BAC Aug 25 Calls (BAC170818C00025000) at $0.55 or lower.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.

Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.