Bulls pile into Bank of America

Adam Jeffery | CNBC

Options were active in the financials yesterday, and trading in Bank of America was red hot.

The October 15 calls really stood out on OptionMonster's tracking systems, with one huge block of 39,800 bought for $0.37. But the volume was largest in the July 14s expiring tomorrow, followed by the August 14s and 15s.

These calls lock in the price where shares can be purchased, letting investors establish upside positions at a relatively inexpensive cost. They can also generate some major leverage if the stock rallies.

Bank of America rose 2.8 percent yesterday to close at $14.31 after the bank reported strong earnings in the morning. The stock is now at its highest level in 2 1/2 years.

More than 1 million options traded in the name overall yesterday, five times the average amount. Calls dominated the activity, accounting for 79 percent of the total.

—By CNBC Contributor David Russell

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David Russell is a reporter and writer for OptionMonster. Najarian has owns BAC calls.