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Option Brief: Bank of America Corp (NYSE:BAC) is bucking the slight bearish bias of the broader equities market today -- up 0.4% at $15.51. However, today's advance is being contained by the equity's 10-day moving average, currently located at $15.54. In the stock's options pits, calls are once again trading at a modest uptick to the intraday average, and based on the equity's rising 30-day at-the-money implied volatility (IV), short-term contracts are being sought after.
Receiving notable attention from option bulls is Bank of America Corp's (NYSE:BAC) weekly 6/27 15.50-strike call, where 73% of the 7,769 contracts traded have done so on the ask side. Plus, IV is up 2.3 percentage points, indicating new positions are being purchased. The volume-weighted average price (VWAP) for the calls is $0.12, making breakeven at this Friday's close -- when the options expire -- $15.62 (strike plus VWAP). Gains are theoretically unlimited with each notch above here BAC is sitting at week's end, while losses are capped at 100% of the premium paid, should BAC settle south of the strike price at expiration.