Bank of America Corporation (BAC) $9.91 +1.80%

| November 2, 2012 | 0 Comments More

Bank of America (BAC) is up 17 cents to $9.92, the best gainer in the Dow, in active trading of 160 million shares and call options on the bank remain very heavily traded today 587,000 calls and 171,000 puts so far. The largest trade surfaced this morning when 44,175 Jan 10 calls traded on BofA for 62 cents per contract on ISE. Data from ISE is reporting a customer bought (55K contracts at that time) to open. Volume in BAC Jan 10 calls has now surpassed 250K contracts and represents today’s most actively traded options contract. Nov 10 calls are the second most actives on the bank, with nearly 60,000 traded. The stock is on a three-day 8.8 percent run higher this week and the flurry of activity in the $10 calls seems to reflect expectations for additional gains in the weeks/months ahead. Some attribute the strength in the stock today to news that international regulators have updated guidelines for bank capital. Wells Fargo is seen as a beneficiary, as it is required to hold the lowest amount of additional capital — 1 percent of assets. BofA is the second lowest, or 1.5 percent — MarketWatch.

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Category: All Stocks, Banks, Large Cap Stocks

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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.