Jon Najarian’s proprietary heat seeker has identified unusual and bullish options action in a top bank.
“I’m seeing very strong activity in Bank of America,” he tells us, “at the 9-strike.”
Najarian takes the action to mean that institutional investors think Bank of America “will push through 9 and go higher.”
Wait, there’s more.
The unusual activity is happening in the weekly calls – they expire on Friday.
In other words, institutional investors are betting the gains happen within 5 days. “They’re defining the bet to this week,” Najarian says, “You gotta’ love that about weekly options.”
And the trade may not be limited to BofA.
Najarian also tells us he’s seeing similar action in Citi . “The money flows are not quite as large but (institutional investors) are still making a bet that in the short term that Citi (also) goes higher into the end of the week,” he says.