Bank of America Corp (BAC)’s Options Activity After Record $16.65 Billion Settlement

Bank of America Corp (NYSE:BAC) reached a settlement with the U.S. Justice Department, agreeing to pay a record $16.65 billion for selling troubled mortgages that led to the financial crisis. Although this will hit the company’s financial hard, Bank of America Corp (NYSE:BAC)’s stock didn’t react much. Scott Bauer from Trading Advantages discussed Bank of America Corp (NYSE:BAC)’s options following this news on Bloomberg earlier today.

Bank of America Corp (NYSE:BAC)

“It’s actually quite quiet and you look at the stock and really very little reaction. The stunning number really is as you guys just talked about is over the long haul, that number is almost eclipsing $70 billion that Bank of America Corp (NYSE:BAC) is getting hit with, but yet the stock is hanging in there. The stock really hasn’t moved much in the last 3-4 years. I don’t particularly see much upside right now, but given the fact that they can withstand this, they are taking this hit for the next quarter. I do think Bank of America Corp (NYSE:BAC) will be one of the financial leaders going forward in the coming years,” Bauer said.

According to Bauer, the option activity in Bank of America Corp (NYSE:BAC)’s is quite neutral. He attributed the slight increase in options volume to Bank of America Corp (NYSE:BAC)’s earnings that is due in the first week of September. Apart from that he feels this settlement news hasn’t significantly affected Bank of America Corp (NYSE:BAC) ‘s options.

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