What the Options Market Tells Us About Bank of America

Whales with a lot of money to spend have taken a noticeably bearish stance on Bank of America.

Looking at options history for Bank of America BAC we detected 8 trades.

If we consider the specifics of each trade, it is accurate to state that 12% of the investors opened trades with bullish expectations and 75% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $261,446 and 4, calls, for a total amount of $242,765.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $32.0 to $60.0 for Bank of America over the last 3 months.

Insights into Volume & Open Interest

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 $32.0 to $60.0, over the past month.

Bank of America Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

Current Position of Bank of America

• Trading volume stands at 3,265,704, with BAC's price up by 0.84%, positioned at $38.6.
• RSI indicators show the stock to be may be oversold.
• Earnings announcement expected in 64 days.

Professional Analyst Ratings for Bank of America

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $45.8.

• An analyst from Keefe, Bruyette & Woods downgraded its action to Outperform with a price target of $48.
• An analyst from Evercore ISI Group persists with their Outperform rating on Bank of America, maintaining a target price of $46.
• Consistent in their evaluation, an analyst from RBC Capital keeps a Outperform rating on Bank of America with a target price of $46.
• An analyst from Morgan Stanley persists with their Overweight rating on Bank of America, maintaining a target price of $49.
• An analyst from BMO Capital persists with their Market Perform rating on Bank of America, maintaining a target price of $40.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Bank of America, Benzinga Pro gives you real-time options trades alerts.