Stocks quoted in this article:
Three equities drawing attention from options traders today are financial firm Bank of America Corp (NYSE:BAC), electronics retailer Best Buy Co., Inc. (NYSE:BBY), and car rental service Hertz Global Holdings, Inc. (NYSE:HTZ). Here's a look at how traders have been aligning their speculative bets today.
- Around 66,000 calls have crossed the tape on Bank of America Corp (NYSE:BAC) today, but not all of this activity is of the traditional bullish variety. The majority of the 21,936 January 2014 16-strike calls that have traded have done so at the bid price, and the International Securities Exchange (ISE) indicates that a number of contracts have been sold to open. At last check, BAC was trading at $15.54.
- Best Buy Co., Inc. (NYSE:BBY) has tacked on 0.6% today to trade at $40.23, but one group of speculators is betting on additional gains over the next several weeks. Nearly 14,000 contracts -- including two large blocks -- have traded at the January 2014 48-strike call, the majority of which have done so on the ask side. Implied volatility (IV) is up 3.7 percentage points, and data from the ISE confirms a portion of the activity is of the buy-to-open kind.
- Hertz Global Holdings, Inc. (NYSE:HTZ) tagged a record peak of $28.40 earlier, after last night announcing it had adopted a shareholder-rights plan. More recently, the stock had pared a portion of these earlier gains to linger near $28.00. Meanwhile, call volume has soared to 14 times the average intraday rate, and the January 2014 28 strike is the most sought-after contract. The majority of the 5,200 calls exchanged have gone off on the ask side, IV has ticked higher, and volume outstrips open interest. Summing it all up, it appears a fresh batch of bullish bets has been initiated.