Spotlight on Bank of America: Analyzing the Surge in Options Activity
Portfolio Pulse from Benzinga Insights
Benzinga reported a surge in options activity for Bank of America (NYSE:BAC), with a bearish sentiment dominating among big-money traders. Out of 12 options trades, 11 were calls and 1 was a put, with a total value of $919,984 and $55,055 respectively. The predicted price range for BAC over the next three months is $27.0 to $33.0. The average open interest is 41,368.8 with a total volume of 11,637.00. Analysts have mixed views, with Keefe, Bruyette & Woods upgrading BAC to Market Perform with a target of $30, and Oppenheimer maintaining an Outperform rating with a target of $51. BAC's current stock price is $29.95, with a potential overbought RSI and the next earnings report due in 52 days.
November 21, 2023 | 2:46 pm
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Bank of America has seen significant bearish options activity, suggesting that investors may expect a price decline. Analyst ratings are mixed, with price targets between $30 and $51.
The bearish options activity indicates that investors are potentially expecting a decline in BAC's stock price. The high volume of bearish trades, especially the call sweeps with bearish sentiment, suggests that these investors have information or a strong belief that the stock will go down. However, the mixed analyst ratings introduce some uncertainty, which is reflected in the confidence score. The importance is high due to the potential impact of options activity on stock price and the upcoming earnings report.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100