logo
  Join        Login             Stock Quote

Bank of America Corp. (BAC), Citigroup (C) Bullish Active Options

 December 17, 2012 02:55 PM
 


BAC - Bank of America Corp. – 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. 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 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 BAC rally another 5.8% over the current price of $10.89 to exceed the average breakeven point at $11.52.

[Related -Bank Stocks: The Misbegottenness of the Volcker Rule Truly Knows No Bounds]

C - Citigroup, Inc. – 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. Citi 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 last traded above $39.51 back in July 2011.

[Related -JPMorgan Chase & Co. (JPM): Capital Concerns Should Ease In 2014]

AEGR - Aegerion Pharmaceuticals, Inc. – Options on biopharmaceutical company, Aegerion Pharmaceuticals, Inc., are more active than usual this morning after one strategist established a sizable bull call spread in the January 2013 expiry. Shares in AEGR are down 1.0% on Monday afternoon to stand at $21.88 as of 12:15 p.m. ET in New York trading. The options player responsible for most of the volume in AEGR calls today appears to be extending bullish sentiment on the stock, banking gains on a position established back in November and initiating a fresh position in the January expiry options. It looks like the trader originally purchased 1,250 calls at the Dec. $20 strike for a premium of $1.60 apiece back on November 15th, and today sold those contracts at a premium of $1.95 apiece for a net profit of around $0.35 per contract. Next, the strategist appears to have purchased a 1,250-lot Jan. 2013 $25/$35 call spread for a net premium outlay of $0.95 each. The bull call spread positions the trader to profit should shares in AEGR rally 19% over the current price of $21.88 to top the breakeven price of $25.95 by expiration, with maximum potential profits of $4.05 per contract available in the event Aegerion's shares surge 37% to top $30.00 at January expiration.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.