Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Short-Term Traders Upbeat About Bank of America Corp (BAC) Trajectory

Bank of America Corp's weekly 6/27 15.50-strike call is being targeted today

by 6/23/2014 10:52 AM
Stocks quoted in this article:

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.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.