Looking At Bank of America's Recent Unusual Options Activity

Deep-pocketed investors have adopted a bearish approach towards Bank of America 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 13 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 38% leaning bullish and 53% bearish. Among these notable options, 4 are puts, totaling $982,054, and 9 are calls, amounting to $697,850.

What’s The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $40.0 to $48.0 for Bank of America over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Bank of America options trades today is 11096.7 with a total volume of 17,739.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Bank of America’s big money trades within a strike price range of $40.0 to $48.0 over the last 30 days.

Bank of America Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

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.

Bank of America’s Current Market Status

• With a trading volume of 11,248,974, the price of BAC is up by 0.01%, reaching $46.75.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 75 days from now.

Expert Opinions on Bank of America

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $54.2.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access.
* Reflecting concerns, an analyst from Truist Securities lowers its rating to Buy with a new price target of $52.
* An analyst from Barclays persists with their Overweight rating on Bank of America, maintaining a target price of $58.
* Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Bank of America, targeting a price of $55.
* An analyst from Truist Securities has decided to maintain their Buy rating on Bank of America, which currently sits at a price target of $53.
* An analyst from UBS upgraded its action to Buy with a price target of $53.

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.