A Closer Look at Bank of America's Options Market Dynamics

Bank of America Corporation +0.45% Pre

Bank of America Corporation

BAC

35.95

35.86

+0.45%

-0.25% Pre

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 16 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 25% leaning bullish and 75% bearish. Among these notable options, 4 are puts, totaling $246,307, and 12 are calls, amounting to $1,079,260.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $25.0 to $40.0 for Bank of America over the recent three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Bank of America stands at 17141.46, with a total volume reaching 8,196.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Bank of America, situated within the strike price corridor from $25.0 to $40.0, throughout the last 30 days.

Bank of America 30-Day Option Volume & Interest Snapshot

Options Call Chart

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
BAC CALL SWEEP BEARISH 04/19/24 $31.00 $390.0K 2.9K 15
BAC CALL TRADE BEARISH 04/19/24 $31.00 $195.0K 2.9K 1.5K
BAC CALL TRADE BEARISH 04/19/24 $33.00 $125.5K 4.1K 1.0K
BAC PUT SWEEP BEARISH 04/19/24 $31.00 $73.0K 1.9K 1.0K
BAC PUT SWEEP BEARISH 04/19/24 $32.00 $69.8K 1.2K 779

About Bank of America

Bank of America is one of the largest financial institutions in the United States, with more than $2.5 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 U.S.-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.

Present Market Standing of Bank of America

  • With a trading volume of 3,156,649, the price of BAC is down by -0.18%, reaching $33.78.
  • Current RSI values indicate that the stock is may be overbought.
  • Next earnings report is scheduled for 15 days from now.

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 $35.47.

  • An analyst from Goldman Sachs has decided to maintain their Buy rating on Bank of America, which currently sits at a price target of $33.
  • An analyst from Odeon Capital has elevated its stance to Buy, setting a new price target at $37.

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.

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