Unpacking the Latest Options Trading Trends in Bank of America

Deep-pocketed investors have adopted a bearish approach towards Bank of America BAC, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in BAC usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for Bank of America. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 9% leaning bullish and 63% bearish. Among these notable options, 3 are puts, totaling $174,800, and 8 are calls, amounting to $420,064.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $28.0 to $42.0 for Bank of America during the past quarter.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Bank of America's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Bank of America's whale activity within a strike price range from $28.0 to $42.0 in 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 $3.0 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.

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

Present Market Standing of Bank of America

• Trading volume stands at 33,691,554, with BAC's price up by 2.01%, positioned at $40.04.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 11 days.

What The Experts Say On Bank of America

A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $48.0.

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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Bank of America with a target price of $47. * Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Bank of America, targeting a price of $49.

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.