BofA (BAC) shares have added 35 cents to $12.48 and today options volume includes a Jan $10 – $11 put spread sold at 14 cents, 50000X. Looks like it’s traded more than once, as volume in both contracts now exceeds 100,000. This might be a closing trade or a position adjustment, as open interest is sufficient to cover in both contracts. Shares are up today and implied volatility is also edging higher, up 5.5 percent to 40. From Oct 12 to Oct 25, shares lost 17.5 percent on concerns about, among other things, issues related to the bank’s foreclosure processes. Shares are up 11.7 percent since that time, however, and have retraced 55.5 percent of that decline. Trading is brisk now, as players jockey for position for the next move in BAC shares. 551K calls and 440K puts traded so far.
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.