Size call spread seller returns to roll again with a Jan2020 7:1 risk/reward
Size call spread seller returns to roll again with a Jan2020 7:1 risk/reward. Shares off nearly $1, or 3.8% to $24.50 at midsession and call volume of 250K dwarfs the 88K put as a seller hammers out long-dated Jan2020 vertical call spreads following Friday's similar action in the 35/37 strikes. Trade du jour is the Jan20 32/35 call vertical with 28K spreads sold at 36c and another 45K currently offered in the complex order book. Buyer gets potential upside of $2.64 on an outlay of 36c if BofA shares manage to rebound from current 15month lows. Friday's flow was a seller of the Jan20 35/37 call spread nearly 88K times around 17c, which was net closing on the 37s. Today's flow appears to roll down that recent adjustment to an even lower strike in anticipation of limited upside over the next year.