BofA (BAC) has seen a day of very brisk trading ahead of earnings. Shares hit a new 52-week high, but were recently down a penny to $19.39 in cautious afternoon trading. In the options, 641K calls and 193K puts traded on the bank. May 20 calls are the most actives, with more than 88K traded. April 20, May 21, May 19, and April 19 calls are busy as well. Implied volatility is up about 3 percent to 32.5. Meanwhile, an implied volatility skew between April (62) and May (31) hints at a possible earnings gap move of roughly 75 cents, or 3.8 percent, when BofA reports earnings tomorrow before the bell.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.