Money In The Bank?
When it was hovering around $4 bucks, the thought of Bank of America being a $30 stock seemed patently absurd. But that's exactly what one option investor is betting on.
In one of the more fascinating trades hitting the tape today, one investor went out and put on a trade that is most profitable if Bank of America hits $30 bucks by the third week in January. Specifically, said investor bought 50,000 of the January 2011 20/30 call spreads, and then sold 50,000 of the January 2001 30/40 call spreads.
This comes on the heals of some seriously bullish comments from subprime savant John Paulson, who said the stock could hit $29 bucks by next near. Apparently, options traders are a buck more bullish.
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