Bank of America (BAC) is up 12 cents to $11.93 and one of 26 Dow stocks holding gains through midday Thursday. The biggest options trade of the day is in BofA after a 60,000-lot of Nov 9 puts was bought for 21 cents per contract, to open. I’m hearing it was tied to stock for $11.95 but I don’t see the print yet. Today’s put purchase represents the biggest options trade (by number of contracts) in BAC since a 73500-lot of May 11 puts traded in the name last week (see 3/25 color). 30-day ATM implied volatility in Bank of America is in the 25th percentile of the 52-week range (26 to 56) and the large blocks of puts on the stock might express the view that an increase in IV is expected, and or, it is possibly protective put hedging activity.$11.85, up 4 cents.
Thursday, April 4, 2013
What's Trading: "Big Put Option Block Hits Bank of America" (BAC)
From What's Trading:
