Bank of America Corporation (BAC) $9.44 +0.11%

| November 12, 2012 | 0 Comments More

BofA (BAC) is flat at $9.43 and Jan 10 calls on the bank are today’s most actively traded options contarct. More than 210,000 have changed hands. One player sold 91,000 contracts for 31 cents each on PCoast (ARCA). Another 73,340 traded at 30 cents electronically on ISE. Open interest is more than 1.01 million and currently the largest block of open interest for any single options contract in the market today. Today’s flow is possibly liquidating trades. The volume is hefty, but also only 21 percent of the existing open interest. If so, the activity seems to reflect some diminishing expectations for another leg higher in BAC through early-2013. The stock is up 37 percent from late-July lows around $7 and Jan 10 calls on the bank are 6 percent OTM, with a .37 delta, and expiring in 67 days.

Category: All Stocks, Banks, Large Cap Stocks

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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.