Traders are paying .23 for the BAC Sep 15 calls totaling 21,640 so far on the day against OI of just 19142.
Bank of America, trading 14.35 (down .03) with an IV30 of 22.25 and an HV10 of 20.77, is seeing bullish call action today.? The stock, with an ADV of 280k and an OI of almost 6.9 million contracts, is seeing heavy action on the September 15 calls.? Traders, via sweep (across many markets), are paying .23 for the September 15 calls totaling 21,640 so far on the day against OI of just 19142.? These appear to be opening call buyers.
For .23, this is a relatively inexpensive bet on BAC catching a bid between now and September.? With financials rallying and a 52 week high of over 18, these traders could be chasing upside in the large cap bank.?? The traders would make a profit at expiration if the stock runs up above 15.23 but could do reasonably well quickly if BAC catches a bid in the next week or two.? This also takes advantage of IV being in the low percentile in the last year.
This trade is aggressively bullish BAC and BAC volatility.