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July 23, 2013  Tue 8:53 AM CT

BAC: SEE CHART GET CHAIN FIND STRATEGIES
A bearish combination play tops this morning's option activity in Bank of America as it trades at highs.

optionMONSTER systems show that a trader bought 20,000 October 13 puts for the ask price of $0.14 and sole 20,000 October 17 calls for $0.11. Volume was multiples of the previous open interest at each strike, so this is a new spread.

While this could be an outright bet that BAC will drop, it is likely a collar trade to protect a long-stock position. That would cost just $0.03, but it does limit gains on the shares to $17. (See our Education section)

BAC is up fractionally to $14.97 after breaking through $15 earlier in the morning, its highest levels since March 2011. Share were down near $12 a month ago.

Barely 20 minutes in the session, more than 87,000 BAC options have already changed hands.
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