BofA (BAC) adds 32 cents to $9.29 and is leading the Dow thirty after the FOMC announced plans to launch QE3. BAC is up 3.5 percent and 30 minutes after the decision was announced, one player bought 38700 BAC Oct 10 calls for 26 cents per contract — which represents the largest equity options trade so far today. 339K calls and 108K puts traded on the bank. Share volume is about 158 million and double the normal levels. 30-day atm implied volatility is down 3 percent to 35 and at the lower end (10th percentile) of the 52-week range (28.5 – 110.5).
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.