Trader bets $1.2 million on Bank of America—and could make a 633 percent profit

Big bets on Bank of America
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Bank of America's summer surge has some traders betting on further upside for the stock.

Wanting to cash in, one trader in particular made a $1.2 million bet on the bank that could see him reaping rewards this Friday.

On Tuesday morning, one trader bought about 100,000 September 2nd weekly 16-strike calls for 12 cents per share, or $12 per options contract. The trade was made when Bank of America was trading at around $15.90, and it has a break-even level of $16.12. If the stock closes below $16 on Friday, the entire $1.2 million spent in options premium will be lost.

While the trade initially looked good, with BofA closing at $16.19 on Tuesday, the stock sold off Wednesday morning.

Still, through midday trading, the shares remained at about $15.85, which Brian Stutland of Equity Armor Investments calls a level of support.

In fact, Tuesday on CNBC's "Fast Money," Stutland predicted that the stock could rise to $16.88 in the near term.

If it closes at or above that level on Friday, the trader stands to make a profit of 633 percent, or $7.6 million.

Bank of America has been rallying throughout the summer, recovering from its post-Brexit lows on the strength of expectations the Fed could well raise rates in December, if not September. The stock is still down about 5 percent year to date.