OptionsHouse

Options Trading News

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.
Share this article with your friends


Related Stories

BAC

Short-term calls target Bank of America

August 30, 2016

Traders are looking for more gains this week in the financial giant, which reported bullish results in July and is up 9 percent in the last month.

OptionsHouse

Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »