To receive further updates on this Bancorpsouth Bank (NYSE: BXS) 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. 

Our indicators continue to give bullish readings this week and, because the first four trading days of the new month typically have a strong bullish bias, the market should continue to rally over the near term. The only exception is that some of the weakest performers of the year could see tax-loss selling as we get further into December.

Meanwhile, the GOP tax plan is seeing some progress. Senator John McCain said that he would support the current version of the bill, and that was one of the reasons why we saw a big run higher in the market on Friday. The measure ultimately did pass the Senate and now appears headed for a conference to reconcile it with the House bill.

I really think the regional banks are going to benefit from the increase we’re seeing in interest rates, in addition to the tax bill. These banks do pay a lot of taxes, so they’re a natural beneficiary of this tax reform effort. Plus, the looser regulatory environment is helpful for regional banks as well; it’s having a real impact. So, today I am recommending a bullish trade on Bancorpsouth Bank (NYSE: BXS):

Buy to open the BXS Jan (2018) 35 Calls (BXS180119C00035000).

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

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.