Trade Of The Week: BAC

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On a day when the markets were down, bank stocks like Bank of America (BAC) generally had positive performances. BAC traded almost 2.5x the usual number of options with about two-thirds of the action in calls. This is generally a bullish sign for the stock (which was up 2% at the time).

One very large trade from the day may have been a put-spread collar, which protects downside risk while also allowing some wiggle room to the upside. This particular spread traded in a block of over 17,000 contracts per leg.

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