Decoding Bank of America's Options Activity: What's the Big Picture?

Bank of America Corporation -0.34%

Bank of America Corporation




Deep-pocketed investors have adopted a bearish approach towards Bank of America (NYSE: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 9 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 33% leaning bullish and 55% bearish. Among these notable options, 3 are puts, totaling $190,577, and 6 are calls, amounting to $414,634.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $30.0 to $50.0 for Bank of America over the last 3 months.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Bank of America's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Bank of America's substantial trades, within a strike price spectrum from $30.0 to $50.0 over the preceding 30 days.

Bank of America Option Activity Analysis: Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
BAC CALL TRADE BULLISH 01/17/25 $8.2 $6.7 $8.02 $32.00 $160.4K 29.6K 0
BAC PUT SWEEP NEUTRAL 01/16/26 $1.79 $1.77 $1.79 $30.00 $133.9K 30.3K 975
BAC CALL SWEEP BEARISH 08/16/24 $4.05 $3.95 $3.95 $35.00 $79.0K 5.6K 1
BAC CALL TRADE BULLISH 09/20/24 $6.7 $6.25 $6.7 $32.00 $67.0K 15.2K 0
BAC CALL SWEEP BEARISH 01/16/26 $1.83 $1.76 $1.82 $50.00 $43.5K 6.0K 240

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.

After a thorough review of the options trading surrounding Bank of America, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Bank of America

  • Currently trading with a volume of 7,720,936, the BAC's price is up by 0.03%, now at $37.84.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 78 days.

What Analysts Are Saying About Bank of America

In the last month, 5 experts released ratings on this stock with an average target price of $40.4.

  • An analyst from Evercore ISI Group persists with their Outperform rating on Bank of America, maintaining a target price of $41.
  • An analyst from Jefferies has decided to maintain their Hold rating on Bank of America, which currently sits at a price target of $39.
  • An analyst from Oppenheimer has decided to maintain their Outperform rating on Bank of America, which currently sits at a price target of $45.
  • An analyst from Keefe, Bruyette & Woods persists with their Market Perform rating on Bank of America, maintaining a target price of $37.
  • Reflecting concerns, an analyst from UBS lowers its rating to Neutral with a new price target of $40.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Bank of America with Benzinga Pro for real-time alerts.

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