Spotlight on Bank of America: Analyzing the Surge in Options Activity

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 33% bullish and 66%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $442,339, and 4 are calls, for a total amount of $135,492.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $41.5 and $55.0 for Bank of America, spanning the last three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Bank of America options trades today is 5106.2 with a total volume of 3,432.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Bank of America's big money trades within a strike price range of $41.5 to $55.0 over the last 30 days.

Bank of America 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Bank of America

Bank of America is one of the largest financial institutions in the United States, with more than $3.2 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.

Having examined the options trading patterns of Bank of America, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Bank of America

• With a volume of 618,247, the price of BAC is up 0.57% at $41.67.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 28 days.

Expert Opinions on Bank of America

1 market experts have recently issued ratings for this stock, with a consensus target price of $50.0.

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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.