Bank Stock Posing Attractive Entry Point

The bank sector is taking a major beating today

Deputy Editor
Aug 15, 2023 at 2:08 PM
facebook X logo linkedin


Charles Schwab Corporation Common Stock (NYSE:SCHW) was last seen down 2.2% to trade at $60.43, as bank stocks take a hit following a dire warning. Specifically, Fitch Ratings warned that it may be forced to downgrade dozens of members of the U.S. banking sector, following its slashed assessment of the industry's health in June.
 

Today's pullback put SCHW back below the $64 level, which has served as a floor since mid-July; however, a historically bullish trendline is flashing on the charts that could help the equity regain some of its lost ground in the coming month. 

According to Schaeffer's Senior Quantitative Analyst Rocky White's latest study, Charles Schwab stock is within one standard deviation of its 40-day moving average. The equity has seen seven similar signals in the last three years, and was higher one month later 63% of the time, averaging a 5.8% gain. A move of similar magnitude would place SCHW near levels not seen since April.

 

SCHW Chart August 152023

An unwinding of options traders' pessimism could add some much-needed tailwinds. This is per Charles Schwab stock's Schaeffer's put/call open interest ratio (SOIR) that sits in the 86th percentile of readings from the past 12 months.

Those looking to get ahead of the curve should consider speculating with options. This is per SCHW's Schaeffer's Volatility Index (SVI) of 28% that ranks higher than just 5% of annual readings, indicating that volatility expectations are low right now -- a boon for premium buyers.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI