BofA (BAC) is up 20 cents to $9.02 and leading the Dow Jones Industrial Average to an 80-point midday gain. Options action in BAC is interesting, as 240,000 calls and 39,000 puts traded on the bank — a ratio of more than six-to-one. Investors are showing the most interest in $10 calls. The Oct 10s are today’s most actively traded equity options contract. Volume is approaching 60K and more than 60 percent trading at the ask. Similar activity is being seen in Nov 10 calls. 56,700 contracts have change hands so far. $10 calls on BAC are 10.9 percent OTM and, while the Oct contracts expires in 22 days, November equity options have 50 days of life remaining. BAC is up more than 60 percent year-to-date, but has not traded north of $10 since July 2011. The company will report earnings again on October 17, which is the Wednesday before the Oct expiration Friday.
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.