Traders bought over 11,000 BAC Jan 2017 17 calls for between .46-.51, tied up to stock
Yesterday, Bank of America Corp was trading at 13.36 with an IV30 of 33.75 and an HV10 of 39.14. ?Traders bought over 11,000 BAC Jan 2017 17 calls for between .46-.51, tied up to stock.? With an ADV of 366,000 and an OI of 5.7 million contracts this is not the biggest trade, but was a large trade in what amounted to consistent call buyers all day.?? Calls out paced puts 2.1 to 1 a huge disparity for BAC.
The trader buying the Jan calls believes that the underlying which was above 17 only a few months ago could be above that level again in the next year.? If the stock moves markedly higher he or she will be in a position to win big
This trade should be considered aggressively bullish the underlying and bullish volatility.