BofA (BAC) April 14 calls are the most actively traded equity options contract so far today. The top two trades are 10,000-contract blocks at 6 cents each. Shares are down 12 cent to $13.37 and these calls are now 4.5 percent out-of-the-money. 36,000 have traded and open interest is 364,528, which is the fourth largest position in Bank of America. Delta is .17, as the contact has three and half days of life remaining. Some investors are likely closing out positions. Others might be taking new positions and hoping for a post-earnings rally in shares. BofA is due to release earnings the morning of options expiration Friday.
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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.