Investors with a lot of money to spend have taken a bearish stance on Bank of America BAC.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BAC, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 9 uncommon options trades for Bank of America.
This isn't normal.
The overall sentiment of these big-money traders is split between 22% bullish and 77%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $110,800, and 7 are calls, for a total amount of $451,007.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $28.0 to $42.0 for Bank of America during the past quarter.
Volume & Open Interest Development
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Bank of America's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Bank of America's significant trades, within a strike price range of $28.0 to $42.0, over the past month.
Bank of America Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BAC | CALL | TRADE | BEARISH | 06/21/24 | $7.1 | $6.75 | $6.8 | $30.00 | $136.0K | 23.5K | 231 |
| BAC | CALL | SWEEP | BEARISH | 01/16/26 | $3.6 | $3.5 | $3.5 | $42.00 | $102.5K | 2.9K | 300 |
| BAC | CALL | TRADE | BULLISH | 06/21/24 | $8.65 | $8.6 | $8.65 | $28.00 | $86.5K | 20.9K | 101 |
| BAC | PUT | TRADE | BULLISH | 04/19/24 | $0.47 | $0.46 | $0.46 | $36.00 | $82.8K | 20.8K | 1.4K |
| BAC | CALL | SWEEP | BEARISH | 04/19/24 | $0.72 | $0.69 | $0.69 | $36.50 | $42.7K | 7.1K | 365 |
About Bank of America
Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.
In light of the recent options history for Bank of America, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Bank of America's Current Market Status
- With a trading volume of 6,725,662, the price of BAC is up by 1.48%, reaching $36.32.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 1 days from now.
Expert Opinions on Bank of America
In the last month, 5 experts released ratings on this stock with an average target price of $39.8.
- An analyst from Wells Fargo has decided to maintain their Overweight rating on Bank of America, which currently sits at a price target of $44.
- Reflecting concerns, an analyst from UBS lowers its rating to Neutral with a new price target of $40.
- Maintaining their stance, an analyst from Keefe, Bruyette & Woods continues to hold a Market Perform rating for Bank of America, targeting a price of $37.
- An analyst from Jefferies persists with their Hold rating on Bank of America, maintaining a target price of $39.
- Consistent in their evaluation, an analyst from Citigroup keeps a Neutral rating on Bank of America with a target price of $39.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Bank of America with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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