How To Use A Covered Strangle Trade On This Banking Giant

Bank of America (BAC) stock is a candidate for a covered strangle, a strategy that suits investors who already own shares and are happy to add more at a lower price while generating extra income along the way. A covered strangle combines three positions — long 100 shares of stock, a short out-of-the-money call, and a short out-of-the-money put. The…