Remember, we don't know if this is a straight up directional bet, a hedge for a long position or one of a number of possible options strategies. Still, it is a big trade.
Will BAC be at $4 by November? We don't know. But someone just made a $2 million bet that this is precisely what will happen. Minutes ago, 54k $4 BAC November Puts were purchased at $0.37. The total price: $2 million. Will this event occur? Like we said, we don't know, but it sure looks far more realistic than Paulson's bet that BAC will trade at $30 by the end of the year....Four bucks is the area of the gap in the chart dating to March 2009: