Bank of America Corporation (NYSE: BAC)

Market sentiment: bullish

Bank of America shares are climbing higher after the company reported earnings that beat analysts’ estimates and said the newly acquired Countrywide Financial Corp will add profit this year.
Bank of America also recently involved in financing CME Group’s acquisition with NYMEX Holdings, Inc.
If this stock won’t go much further down, then it could be a good time to play bullish hedge trade.
After hitting low at $18.44 in second week of July, this stock is trending higher with high volume. This stock looks bullish because:

• Down channel has broken and price is above upper channel.
• Price is above MA (50) and trying to touch 200(MA) at $37.5
• Positive divergence has formed by RSI (14) and CCI (20)
• RSI (14) is 66 and CCI (14) is 188, which implies strong uptrend.

Keeping the above technical and fundamental reasons, this could be a good time to do September bull-put credit spread below $20. This trade will make 5.6% return in 2 months as long as BAC stays above $20 at September expiration.