Bank of America has climbed to its highest levels in two years, and one enormous trade is looking for the stock to hold onto those gains.
optionMONSTER systems show that a trader sold 22,100 July 12 puts in volume that was more than 3 times the strike's open interest before the day began, which clearly indicates that this is a new position.
The put sale represents a bet that BAC will hold above the $12 strike price through expiration in mid-July. The trader will also be on the hook by buy shares at that level if the stock pulls back, which might his or her intent. (See our Education section)
BAC was down fractionally on Friday to $12.42 but still not far from its 52-week closing high of $12.78 reached on March 20. The bank, which is trading at its highest levels since the spring of 2011, was below $12 as recently as a week ago.
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