Why Bank Of America Stock Options Suggest Upside After Q3 Earnings

On CNBC's "Options Action," Brian Stutland of Equity Armor Investments said that Bank of America Corp BAC traded at 1.4 times its average daily call volume on Wednesday.

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There was a buyer of 10,000 of the October 32-calls at an average price of 99 cents per contract, Stutland mentioned. The trader expects Bank of America’s stock to rise by at least 3.5% and trade above $33 by October expiration, he added.

“These calls expire just after Bank of America’s earnings on October 17,” Stutland mentioned. “Certainly this has been a weighted play to the upside. Traders out there, rather than buying stock, what is interesting is people have been using calls to play to the upside,” he stated.

BAC Price Action: Shares of Bank of America declined by 1.42% to close at $31.92 on Wednesday.

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