Deep-pocketed investors have recently taken a bullish stance on Bank of America (BAC), indicating that something significant may be on the horizon. According to public options records tracked by Benzinga, there have been 29 extraordinary options activities for Bank of America, a level of activity that is out of the ordinary.
The general sentiment among these heavyweight investors is divided, with 72% leaning bullish and 27% leaning bearish. Out of the 29 options activities, 18 are puts totaling $723,833, while 11 are calls totaling $925,623.
Analyzing the volume and open interest in these contracts, it appears that these big players have been eyeing a price range of $20.0 to $40.0 for Bank of America over the past quarter.
In today’s trading context, the average open interest for Bank of America options stands at 18,299.0, with a total volume of 23,978.00. The accompanying chart illustrates the progression of both call and put option volume and open interest for high-value trades in Bank of America within the strike price corridor from $20.0 to $40.0 over the last 30 days.
Bank of America is one of the largest financial institutions in the United States, with over $2.5 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. The company’s consumer-facing lines of business include branches, retail lending products, credit and debit cards, and small-business services. Bank of America’s Merrill Lynch operations provide brokerage and wealth-management services, while its private bank serves high-net-worth individuals. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. While Bank of America has operations in several countries, it primarily focuses on the U.S. market.
Currently, Bank of America is trading with a volume of 8,030,318, and its price is down by -0.39% at $30.73. RSI readings suggest that the stock may be approaching overbought territory. The anticipated earnings release for the company is in 31 days.
According to professional analysts, the average price target for Bank of America is $42.0. Analysts from Oppenheimer have maintained their Outperform rating on the stock with a price target of $51, while analysts from Goldman Sachs continue to rate Bank of America as a Buy with a target price of $33.
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. To stay updated with the latest options trades for Bank of America, traders can use Benzinga Pro for real-time alerts.
