Bullish options active on financial stocks as shares in BAC, C extend gains

Page 1 of 2

Bank of America Corp (NYSE:BAC) – Trading traffic in Bank of America calls this morning suggests some options players are looking for shares in the name to continue to climb this week. Bank of America Corp (NYSE:BAC) is the strongest performer in the Dow Jones Industrial Average today, with shares up nearly 3% during the first half of the session to $10.89, the highest level since July 2011. The stock has gained 120% since this time last year. Bullish traders positioning for Bank of America Corp (NYSE:BAC) shares to extend gains snapped up calls that have four full trading sessions remaining to expiration. The Dec. 21 ’12 $11 strike calls changed hands more than 40,000 times in the early going, with most of the volume purchased by traders for an average premium of $0.08 apiece. Upside call buyers appear to be adding to positions established on last week. Time and sales data suggests some 32,000 of the $11 strike calls were purchased on Friday for an average premium of $0.04 per contract. Meanwhile, fresh interest is building in the Dec. 21 ’12 $11.5 strike calls, with some 7,700 call options in play versus open interest of just one contract. Most of the $11.5 strike calls appear to have been purchased this morning for an average premium of $0.02 each. Buyers of these contracts stand ready to profit at expiration should shares in Bank of America Corp (NYSE:BAC) rally another 5.8% over the current price of $10.89 to exceed the average breakeven point at $11.52.

Bank of America Corp (NYSE:BAC)

Citigroup Inc. (NYSE:C) – Shares in Citigroup are trading 2.8% higher this afternoon at $38.66 on an up day for U.S. equities and a strong day for financial stocks. Citigroup Inc. (NYSE:C) shares touched a new 52-week high of $38.74 during the first half of the session, marking a near 60% move to the upside for the stock since this time last year. Traders anticipating higher highs in Citigroup shares by year end snapped up 2,200 calls at the Dec. 28 ’12 $39 strike for an average premium of $0.51 apiece. Call buyers may profit at expiration next week should the price of the underlying rally another 2.2% to exceed the average breakeven price of $39.51. Shares in Citigroup Inc. (NYSE:C) last traded above $39.51 back in July 2011.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!