Bank of America bulls buy call
Paper bought 30,000 BAC Dec 2 weekly 21.5 calls for .02, which was the offer and, based on open interest, is likely an opening trade. Bank of America Corp., trading 20.36 (up .07) with an IV30 of 25.74 up 1.05 and an HV10 of 40.69, saw a bullish out of the money call buyer today. The stock, with an ADV of 412,000 and open interest of 7.7 million contracts, saw a customer buy 30,000 of the Dec 2 weekly 21.5 calls for .02, which was the offer and, based on open interest, is likely an opening trade. This appears to be a customer that thinks there could be continued upside in BAC through the end of next week. The trade will reach maximum profit if BAC runs above 21.5 by a week from Friday. The stock has been outpacing IV, thus this could be a play on volatility being too cheap. Alternatively, while there is no stock in this trade, it could be a hedge for someone establishing a new short although this is less likely. This trade is aggressively bullish volatil...