Call Buyers Flock To Bank Of America Stock Ahead Of Earnings

BAC has traded higher after earnings in five of the last eight quarters

Managing Editor
Apr 13, 2018 at 12:14 PM
facebook X logo linkedin

Earnings season is underway, and bank name Bank of America Corp (NYSE:BAC) will kick things off next week, as it's scheduled to report first-quarter earnings before the open Monday. BAC stock will try to avoid the fate of sector peers JPMorgan (JPM), Wells Fargo (WFC), and Citigroup (C), which have turned lower today in the wake of their quarterly reports. Let's take a closer look at BAC's earnings history below.

BAC stock has had a positive earnings reaction in five of the last eight quarters. In the last two years overall, the equity has averaged a 1.1% move the day after earnings, regardless of direction. This time around, the options market is pricing in a larger-than-usual 3.7% one-day move, per Trade-Alert.

Looking closer at the charts, Bank of America shares touched a multi-year high of $33.05 a month ago, overtaking their 20-day moving average for the first time in three weeks. Today, however, the stock is down 2.1% to trade at $29.79, breaching this trendline once more.

In the options pits, calls have become more popular in the past two weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 4.57, which ranks in the elevated 83rd percentile of its annual range.

Shifting gears to today, call volume has ramped up. Over 253,000 call options have changed hands, two times the average intraday pace, and volume is pacing for the 99th percentile of its annual range.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI