Bank of America: Why Options Traders See More Pain Ahead

Bank of America Corporation BAC shares fell Thursday despite Wall Street recording gains in the session .

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Bank of America was the tenth busiest among single stocks and also the busiest among financials on Thursday.

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There was a buyer of 1,000 of the January 32-puts at an average price of $1.34 per contract, Khouw mentioned. The trader expects Bank of America’s stock to retest the October lows by January expiration.

BAC Price Action: Shares of Bank of America fell 0.9% to $32.44 during the regular trading session on Thursday, but added 0.3% in after-hours trading.

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