One thing has been made clear during the uncertainty whirlwind that has surrounded the COVID-19 crisis: Wall Street is choosing to take the optimistic approach at every opportunity. Whenever it has been delivered both bullish and bearish news, it has chosen to focus on the bullish.

While this may not always be the case moving forward, we have found it is never a good idea to fight Wall Street in the short term.

That’s why we’re recommending a new bullish put write on Bank of America (NYSE:BAC). We believe the news of an $824 billion stimulus plan from the European Union and the continued reopening of the U.S. economy will overshadow low consumer sentiment numbers in the short term.

The Shift to Financial Stocks Continues

Yesterday, we wrote about the gradual move from technology stocks to financial stocks. That trend is continuing, and while we took advantage of the drop in tech with a put write on Microsoft (NYSE:MSFT), a strong company with strong support, we also want to capitalize on the bullishness in the financial sector.

If you look at the chart below you can see that the tech sector and the financial sector, as represented by the Technology Select Sector SPDR Fund (NYSEARCA:XLK) and the Financial Select Sector SPDR Fund (NYSEARCA:XLF) respectively, moved opposite directions again yesterday.

Daily Chart of the Technology Select Sector SPDR Fund (XLK) and the Financial Select Sector SPDR Fund (XLF) — Chart Source: TradingView

Both experienced a lot of intraday volatility, and XLF did drop after the opening, but we think there’s more bullishness to come. According to BAC CEO Brian Moynihan, requests for loan deferrals and forbearance have started to slow, and the U.S. economy is starting on the long road to recovery.

Finally Breaking Out

For more evidence that traders are still bullish on banks, look no further than BAC’s chart. The stock failed to break above resistance at $25 two times, but yesterday BAC finally broke out. We expect this bullish trend to continue.

Daily Chart of Bank of America (BAC) — Chart Source: TradingView

The $22 level would make an excellent strike price because it has held as support a few times during the past few months, and we expect it to continue to hold as support, even if BAC pulls back a bit.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of Strategic Trader.