Bank of America Corp Unusual Bearish Options Activity Means Higher Risks

 Bank of America Corp Unusual Bearish Options Activity Means Higher Risks

In today’s session Bank of America Corp (BAC) recorded an unusually high (3,969) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the February, 2017 put, expecting serious BAC decrease. With 3,969 contracts traded and 206864 open interest for the Feb, 17 contract, it seems this is a quite bearish bet. The option with symbol: BAC170217P00015000 closed last at: $0.78 or 2.6% up. About 11.21M shares traded hands. Bank of America Corp (NYSE:BAC) has risen 17.82% since March 2, 2016 and is uptrending. It has outperformed by 9.56% the S&P500.

Analysts await Bank of America Corp (NYSE:BAC) to report earnings on October, 17 before the open. They expect $0.33 EPS, down 10.81% or $0.04 from last year’s $0.37 per share. BAC’s profit will be $3.40B for 12.25 P/E if the $0.33 EPS becomes a reality. After $0.36 actual EPS reported by Bank of America Corp for the previous quarter, Wall Street now forecasts -8.33% negative EPS growth.

Bank of America Corp (NYSE:BAC) Ratings Coverage

Out of 22 analysts covering Bank of America (NYSE:BAC), 14 rate it a “Buy”, 0 “Sell”, while 8 “Hold”. This means 64% are positive. $21 is the highest target while $15 is the lowest. The $17.84 average target is 10.33% above today’s ($16.17) stock price. Bank of America has been the topic of 43 analyst reports since July 21, 2015 according to StockzIntelligence Inc. On Tuesday, September 1 the stock rating was upgraded by Bernstein to “Buy”. Wood downgraded Bank of America Corp (NYSE:BAC) on Monday, May 16 to “Market Perform” rating. The firm earned “Buy” rating on Wednesday, August 12 by Deutsche Bank. On Tuesday, September 1 the stock rating was upgraded by KBW to “Buy”. The stock of Bank of America Corp (NYSE:BAC) has “Buy” rating given on Tuesday, August 25 by Deutsche Bank. Oppenheimer maintained the stock with “Outperform” rating in Tuesday, October 6 report. As per Monday, August 24, the company rating was upgraded by Vetr. JP Morgan maintained it with “Overweight” rating and $16 target price in Thursday, April 7 report. Citigroup maintained Bank of America Corp (NYSE:BAC) on Tuesday, July 19 with “Buy” rating. The stock of Bank of America Corp (NYSE:BAC) earned “Neutral” rating by Robert W. Baird on Tuesday, August 25.

According to Zacks Investment Research, “Bank of America Corp. is one of the world’s leading financial services companies. Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose.”

Insitutional Activity: The institutional sentiment decreased to 0.9 in 2016 Q2. Its down 0.33, from 1.23 in 2016Q1. The ratio dropped, as 101 funds sold all Bank of America Corp shares owned while 529 reduced positions. 83 funds bought stakes while 482 increased positions. They now own 6.08 billion shares or 0.24% less from 6.09 billion shares in 2016Q1.
Ing Groep Nv last reported 10.05% of its portfolio in the stock. Wellington Shields Management Ltd Liability Corp last reported 96,029 shares in the company. Moreover, Amici Capital Limited Company has 1% invested in Bank of America Corp (NYSE:BAC) for 402,500 shares. The Rhode Island-based Parsons Cap Management Inc Ri has invested 0.11% in Bank of America Corp (NYSE:BAC). First Citizens Comml Bank, a North Carolina-based fund reported 344,009 shares. Huber Cap Management Lc holds 1.89% or 3.47M shares in its portfolio. Baldwin Brothers Incorporated Ma has invested 1.05% of its portfolio in Bank of America Corp (NYSE:BAC). Asset Mgmt has invested 0.53% of its portfolio in Bank of America Corp (NYSE:BAC). Bank Of America Corp De reported 15.95 million shares or 0.05% of all its holdings. Thompson Siegel Walmsley Ltd has invested 0% of its portfolio in Bank of America Corp (NYSE:BAC). Westwood Holdings owns 7.25 million shares or 0.85% of their US portfolio. Arrow Fincl Corporation accumulated 183,997 shares or 0.64% of the stock. Winch Advisory Lc accumulated 86,915 shares or 1.4% of the stock. Moreover, Cutler Capital Mgmt Lc has 0.1% invested in Bank of America Corp (NYSE:BAC) for 28,000 shares. Wolverine Asset Management Ltd Liability Corporation last reported 0.05% of its portfolio in the stock.

Insider Transactions: Since August 2, 2016, the stock had 1 insider purchase, and 0 insider sales for $353,250 net activity. Shares for $353,250 were bought by Woods Thomas D on Tuesday, August 2.

Bank of America Corporation is a bank holding and financial holding company. The company has a market cap of $166.81 billion. The Firm is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, firms and governments with various banking, investing, asset management and other financial and risk management services and products. It has a 14.1 P/E ratio.

BAC Company Profile

Bank of America Corporation, incorporated on July 31, 1998, is a bank holding firm (BHC) and a financial holding company. The Firm is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, firms and governments with a range of banking, investing, asset management and other financial and risk management services and products. The Company’s divisions include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, Global Markets, Legacy Assets & Servicing (LAS) and All Other. Through its banking and various nonbank subsidiaries throughout the United States and international markets, the Company provides a range of banking and nonbank financial services and products.

Another recent and important Bank of America Corp (NYSE:BAC) news was published by Investorplace.com which published an article titled: “Wednesday’s Vital Data: Bank of America Corp (BAC), Facebook Inc (FB) and …” on October 05, 2016.

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