B of A Stock Options
| BAC Stock | USD 26.70 0.68 2.48% |
B of A's option chain provides insight into all available option contracts written on B of A's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of B of A's stock options below provides a detailed picture of the payoff. Comparing vital and dynamic information of various option contracts across diverse expiration periods will help you make an educated decision on your market timing strategies around investing in a given BAC option contract.
In The Money vs. Out of Money Option Contracts on B of A
Analyzing B of A's in-the-money options over time can help investors to take a profitable long position in B of A regardless of its overall volatility. This is especially true when B of A's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money B of A's options could be used as guardians of the underlying stock as they move almost dollar for dollar with B of A's stock while costing only a fraction of its price.
B of A's latest option contracts expiring on 2023-10-06 are carrying combined implied volatility of 35.48 with a put-to-call open interest ratio of 1.1 over 78 outstanding agreements suggesting investors are buying more puts than calls on contracts expiring on 2023-10-06. The current put volume is at 22043, with calls trading at the volume of 32321. This yields a 0.68 put-to-call volume ratio. The B of A option chain provides detailed quote and price information for the current Bank Of America option contracts. It shows all of B of A's listed puts, calls, expiration dates, strike prices, and other pricing information.
Open Interest Against 2023-10-06 Option Contracts
B of A option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in B of A's lending market. For example, when B of A's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on B of A, he or she must hedge the risk by shorting B of A stock over its option's life.
2023-10-06
The chart above shows B of A's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. B of A's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for B of A's option, there is no secondary market available for investors to trade.
B of A Maximum Pain Price across 2023-10-06 Option Contracts
Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as B of A close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
B of A's stock options are financial instruments that give investors the right to buy or sell shares of Bank Of America common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell BAC stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If B of A's stock price goes up or down, the stock options follow.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank Of America. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Please note that buying 'in-the-money' options on B of A lessens the impact of time decay, as they carry both intrinsic and time value. So, even if B of A's value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money B of A contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if BAC Stock moves the wrong way.
As of October 3, 2023, Net Income Common Stock is expected to decline to about 23.7 BBank Of America In The Money Call Balance
When B of A's strike price is surpassing the current stock price, the option contract against Bank Of America stock is said to be in the money. When it comes to buying B of A's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Bank Of America are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.
BAC Current Options Market Mood
B of A's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps BAC Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.
Put-to-Call Open Interest
Put-to-Call Volume
Most options investors, including buyers and sellers of B of A's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. B of A's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current B of A's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.
Rule 16 of the current BAC contract
Base on the Rule 16, the options market is currently suggesting that Bank Of America will have an average daily up or down price movement of about 2.22% per day over the life of the 2023-10-06 option contract. With B of A trading at USD26.7, that is roughly USD0.59. If you think that the market is fully incorporating B of A's daily price movement you should consider buying Bank Of America options at the current volatility level of 35.48%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
BAC |
Purchasing B of A options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" BAC calls. Remember, the seller must deliver Bank Of America stock to the call owner when a call is exercised.
B of A Option Chain
When B of A's strike price is surpassing the current stock price, the option contract against Bank Of America stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
2023-10-062023-10-132023-10-202023-10-272023-11-032023-11-102023-11-172023-12-152024-01-192024-02-162024-03-152024-04-192024-05-172024-06-212024-09-202025-01-172025-06-202026-01-16B of A's option chain is a display of a range of information that helps investors for ways to trade options on BAC. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for BAC. It also shows strike prices and maturity days for a B of A against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone. | Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Call | 2023-10-06 CALL at $18.0 | 0.9774 | 0.0096 | 0 | 2023-10-06 | 8.65 - 8.75 | 9.1 | In |
Call | 2023-10-06 CALL at $19.0 | 0.9747 | 0.0125 | 5 | 2023-10-06 | 7.65 - 7.75 | 8.35 | In |
Call | 2023-10-06 CALL at $20.0 | 0.9713 | 0.0154 | 12 | 2023-10-06 | 6.65 - 6.75 | 9.0 | In |
Call | 2023-10-06 CALL at $21.0 | 0.9671 | 0.0202 | 0 | 2023-10-06 | 5.65 - 5.75 | 0.0 | In |
Call | 2023-10-06 CALL at $22.0 | 0.9616 | 0.0275 | 0 | 2023-10-06 | 4.65 - 4.75 | 0.0 | In |
Call | 2023-10-06 CALL at $22.5 | 0.958 | 0.0327 | 0 | 2023-10-06 | 4.15 - 4.25 | 0.0 | In |
Call | 2023-10-06 CALL at $23.0 | 0.9538 | 0.0396 | 2 | 2023-10-06 | 3.65 - 3.75 | 4.45 | In |
Call | 2023-10-06 CALL at $23.5 | 0.9485 | 0.049 | 0 | 2023-10-06 | 3.15 - 3.25 | 3.55 | In |
Call | 2023-10-06 CALL at $24.0 | 0.9599 | 0.0518 | 6 | 2023-10-06 | 2.69 - 2.77 | 4.14 | In |
Call | 2023-10-06 CALL at $24.5 | 0.9479 | 0.0738 | 1 | 2023-10-06 | 2.2 - 2.27 | 2.93 | In |
Call | 2023-10-06 CALL at $25.0 | 0.9314 | 0.1097 | 27 | 2023-10-06 | 1.72 - 1.76 | 1.68 | In |
Call | 2023-10-06 CALL at $25.5 | 0.8771 | 0.1882 | 4 | 2023-10-06 | 1.25 - 1.28 | 1.27 | In |
Call | 2023-10-06 CALL at $26.0 | 0.776 | 0.3107 | 210 | 2023-10-06 | 0.81 - 0.84 | 0.83 | In |
Call | 2023-10-06 CALL at $26.5 | 0.5984 | 0.4406 | 143 | 2023-10-06 | 0.45 - 0.46 | 0.46 | In |
Call | 2023-10-06 CALL at $27.0 | 0.3646 | 0.4609 | 2294 | 2023-10-06 | 0.2 - 0.21 | 0.2 | Out |
Call | 2023-10-06 CALL at $27.5 | 0.1788 | 0.3116 | 5269 | 2023-10-06 | 0.07 - 0.08 | 0.08 | Out |
Call | 2023-10-06 CALL at $28.0 | 0.0588 | 0.1463 | 6830 | 2023-10-06 | 0.02 - 0.03 | 0.02 | Out |
Call | 2023-10-06 CALL at $28.5 | 0.0289 | 0.0726 | 7373 | 2023-10-06 | 0.01 - 0.02 | 0.01 | Out |
Call | 2023-10-06 CALL at $29.0 | 0.0243 | 0.0517 | 8826 | 2023-10-06 | 0.0 - 0.01 | 0.01 | Out |
Call | 2023-10-06 CALL at $29.5 | 0.0354 | 0.0538 | 1637 | 2023-10-06 | 0.0 - 0.01 | 0.02 | Out |
Call | 2023-10-06 CALL at $30.0 | 0.0189 | 0.0312 | 4882 | 2023-10-06 | 0.0 - 0.01 | 0.01 | Out |
Call | 2023-10-06 CALL at $30.5 | 0.0171 | 0.0257 | 1774 | 2023-10-06 | 0.0 - 0.01 | 0.01 | Out |
Call | 2023-10-06 CALL at $31.0 | 0.0157 | 0.0216 | 2752 | 2023-10-06 | 0.0 - 0.01 | 0.01 | Out |
Put | 2023-10-06 PUT at $41.0 | -0.9831 | 0.0081 | 0 | 2023-10-06 | 14.25 - 14.4 | 0.0 | In |
Put | 2023-10-06 PUT at $34.5 | -0.9618 | 0.0224 | 0 | 2023-10-06 | 7.75 - 7.85 | 0.0 | In |
Put | 2023-10-06 PUT at $34.0 | -0.9603 | 0.0242 | 0 | 2023-10-06 | 7.25 - 7.35 | 6.66 | In |
Put | 2023-10-06 PUT at $33.5 | -0.9586 | 0.0263 | 0 | 2023-10-06 | 6.75 - 6.85 | 6.2 | In |
Put | 2023-10-06 PUT at $33.0 | -0.9568 | 0.0288 | 0 | 2023-10-06 | 6.25 - 6.35 | 5.7 | In |
Put | 2023-10-06 PUT at $32.5 | -0.9546 | 0.0318 | 0 | 2023-10-06 | 5.75 - 5.85 | 0.0 | In |
Put | 2023-10-06 PUT at $32.0 | -0.9522 | 0.0355 | 0 | 2023-10-06 | 5.25 - 5.35 | 4.85 | In |
Put | 2023-10-06 PUT at $31.5 | -0.9493 | 0.0399 | 0 | 2023-10-06 | 4.75 - 4.85 | 4.48 | In |
Put | 2023-10-06 PUT at $31.0 | -0.9458 | 0.0551 | 18 | 2023-10-06 | 4.25 - 4.35 | 4.25 | In |
Put | 2023-10-06 PUT at $30.5 | -0.9417 | 0.0529 | 0 | 2023-10-06 | 3.75 - 3.85 | 2.84 | In |
Put | 2023-10-06 PUT at $30.0 | -0.9365 | 0.0627 | 3 | 2023-10-06 | 3.25 - 3.35 | 3.2 | In |
Put | 2023-10-06 PUT at $29.5 | -0.9392 | 0.0716 | 16 | 2023-10-06 | 2.68 - 2.84 | 2.05 | In |
Put | 2023-10-06 PUT at $29.0 | -0.9431 | 0.0835 | 1337 | 2023-10-06 | 2.29 - 2.33 | 2.33 | In |
Put | 2023-10-06 PUT at $28.5 | -0.9334 | 0.1134 | 605 | 2023-10-06 | 1.77 - 1.84 | 1.83 | In |
Put | 2023-10-06 PUT at $28.0 | -0.9365 | 0.152 | 4130 | 2023-10-06 | 1.3 - 1.34 | 1.32 | In |
Put | 2023-10-06 PUT at $27.5 | -0.8423 | 0.313 | 9387 | 2023-10-06 | 0.84 - 0.88 | 0.91 | In |
Put | 2023-10-06 PUT at $27.0 | -0.634 | 0.4565 | 8103 | 2023-10-06 | 0.48 - 0.5 | 0.5 | In |
Put | 2023-10-06 PUT at $26.5 | -0.4 | 0.4488 | 1886 | 2023-10-06 | 0.24 - 0.25 | 0.25 | Out |
Put | 2023-10-06 PUT at $26.0 | -0.2019 | 0.3232 | 12287 | 2023-10-06 | 0.1 - 0.11 | 0.1 | Out |
Put | 2023-10-06 PUT at $25.5 | -0.0908 | 0.175 | 1804 | 2023-10-06 | 0.04 - 0.05 | 0.04 | Out |
Put | 2023-10-06 PUT at $25.0 | -0.0598 | 0.1036 | 1470 | 2023-10-06 | 0.02 - 0.03 | 0.03 | Out |
Put | 2023-10-06 PUT at $24.5 | -0.0227 | 0.0464 | 444 | 2023-10-06 | 0.01 - 0.02 | 0.01 | Out |
Put | 2023-10-06 PUT at $24.0 | -0.0193 | 0.0336 | 1092 | 2023-10-06 | 0.0 - 0.01 | 0.01 | Out |
B of A Net Income Common Stock Over Time
The amount of net income (loss) for the period due to common shareholders. Typically differs from Net Income to the parent entity due to the deduction of Preferred Dividends Income Statement Impact. Net Income Common Stock |
| Timeline |
Bank Of America Historical Liabilities
While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of B of A, understanding its historical liability is critical in projecting B of A's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how B of A uses its financing power over time.
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Pair Trading with B of A
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if B of A position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in B of A will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to B of A could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace B of A when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back B of A - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank Of America to buy it.
The correlation of B of A is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as B of A moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for B of A can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank Of America. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Bank Of America information on this page should be used as a complementary analysis to other B of A's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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When running B of A's price analysis, check to measure B of A's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy B of A is operating at the current time. Most of B of A's value examination focuses on studying past and present price action to predict the probability of B of A's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move B of A's price. Additionally, you may evaluate how the addition of B of A to your portfolios can decrease your overall portfolio volatility.
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Is B of A's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of B of A. If investors know BAC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about B of A listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.205 | Dividend Share 0.88 | Earnings Share 3.48 | Revenue Per Share 11.942 | Quarterly Revenue Growth 0.086 |
The market value of Bank Of America is measured differently than its book value, which is the value of BAC that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because B of A's market value can be influenced by many factors that don't directly affect B of A's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine if B of A is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.