Big call spread is Bank of America as shares give up early gains
Big call spread is Bank of America as shares give up early gains. The stock hit a high of $16.19 this morning after earnings were reported, but is now flat at $16 even. An investor sells 25K Oct 28th 16.5 calls at 11.5c to buy 11.2K Nov 25th 16.5 calls for 37c. The activity likely rolls a bullish play out one month and expressing the view shares will hold below $16.5 through the remainder of October, but then rally beyond that into the Thanksgiving holiday. Separately, an Oct 28th 16 - Nov 25th 16.5 call spread trades for 5c, 7350X, and is likely rolling a bullish play as well. Overall, trading is active at 31M shares, 135K calls and 30K puts. 30-day implied volatility is down 7.5% to 27 and 30-day IV skew remains notable at 18.5, which is the 93rd percentile of the 52-week range.