Is Bank of America Heading to $3.50?

Is Bank of America BAC ready to lose 50% of its value? One options trader believes so… A short while ago the November $4.00 put was purchased 15,000 times, on the offer, for a net debit of $0.39. Total volume on the strike now totals 53,000 contracts; open interest is only 10,534 contracts. Given what the trader paid for the options, he/she believes that shares could lose over 50% of their value in the next few months. Break even on the trade is $3.61. Bank of America Corporation is a bank holding company, and a financial holding company. Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services.