Most Active Options Update: Bank of America Corp (BAC)

Bank of America Corp put player bets on a slow start to the new year

Oct 31, 2014 at 1:50 PM
facebook X logo linkedin

The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is financial firm Bank of America Corp (NYSE:BAC), where January puts are in focus.

Most Active Options Table

Bank of America Corp is following in the bullish footsteps of the broader equities market -- up 0.7% to trade at $17.15. This move higher -- which just echoes the stock's recent technical trajectory -- has prompted a number of speculators to sell to close their weekly 10/31 17-strike calls ahead of tonight's expiration.

Elsewhere in BAC's options pits, the January 2015 15-strike put has received notable attention, due to a large block of 15,000 contracts that changed hands earlier at the ask price of $0.15 apiece, suggesting they were bought. Implied volatility edged higher at the transaction, hinting at the possibility a fresh batch of bearish bets was initiated.

If this does represent buy-to-open activity, the speculator's profit will accrue on a move south of breakeven at $14.85 (strike less the premium paid). Losses, meanwhile, are limited to the initial cash outlay, should BAC maintain its perch atop the strike through January options expiration. For today's trader, specifically, this equates to $225,000 (number of contracts * 100 shares per contract * premium paid).

As indicated, though, Bank of America Corp (NYSE:BAC) has been on quite a roll of late. In fact, since taking a sharp bounce off its 120-day moving average in the session subsequent to reporting earnings, BAC has rallied more than 11%. What's more, the shares haven't traded south of $15 on an intraday basis since Aug. 8. Against this backdrop, delta on the aforementioned January put is currently docked at negative 0.13, indicating a slim 13% chance the option will be in the money at expiration.


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