Traders turned bullish on Bank of America and Citigroup yesterday.
The Heat Seeker yesterday detected early buying in Bank of America's Weekly 9 calls, which expire this Friday, for $0.17 and $0.18. Traders then made additional short-term bets a little while later in Citi, buying its Weekly 34 calls for $0.37 to $0.41.
Long calls lock in the price investors must pay for the stock, so they can generate major leverage in a hurry if these banks move in the right direction. But if the stocks don't rally, those options will expire worthless. (See our Education section)
C fell 2.36 percent to $33.97 yesterday, coming off its session lows as the options were bought. Total calls in the name outnumbered puts by 77,000 to 53,000.
BAC attempted to rebound but finished near its lows, down 3.25 percent to $8.93.
Disclosures: I own C shares and BAC calls.
(A version of this post appeared on InsideOptions Pro yesterday.)
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