Name of Financial Services Bank of America (BAC) retreated from its 13-year high of $ 43.49 on June 3 in recent months. The stock continues to outperform the market as a whole with a 58.4% lead year-to-date, and just reported that its credit card default and write-off rates improved in August. Additionally, stocks have recently moved closer to a historically bullish trendline, making it a great time for investors to bet on BAC’s next rise.
Digging deeper, the Bank of America stock has just returned to its 160-day moving average, after spending some time above that trendline. According to data from Rocky White, senior quantitative analyst at Schaeffer, similar moves have occurred three times in the past three years, with the stock posting a positive one-month return 67% of the time, averaging 5%. A comparable move from its current location would push the BAC back above the $ 42 mark.
A change in the option wells would fuel additional tailwinds for equity. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BAC’s 50-day buy / sell volume ratio is above 92% of reads in its range annual. This means that long put options are clawed back faster than usual over the past two months. Echoing this, short term options traders have rarely been more put oriented. This is the open put / call (EVEN) interest ratio of Bank of America’s Schaeffer stock of 0.98, which is above 82% of the last 12-month readings.