Despite J.P. Morgan Chase’s (NYSE: JPM) recent run-in with a Twitter buzz-saw, there is evidence to suggest all systems may be go for FAS. For example, one of the largest options trades of the year in Bank of America (NYSE: BAC) was spotted.
A “buyer paid $0.74 for nearly 125,000 contracts to open the position, and ‘tied’ the trade to a delta hedge of 4.12 million shares at $14.45. The delta tie is a common way to eliminate a big part of the slippage that would occur if the trader tried to buy the calls outright,” writes Henry Schwartz for the The Street.
That is a bullish trade that appears to be a bet on Bank of America running higher. FAS trades about 8.6% above its 50-day moving average and 23.2% above its 200-day line. A move above $80 could confirm the aforementioned breakout scenario. [A FAS/FAZ Debate]
Direxion Daily Financial Bull 3X Shares
