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Schaeffer's Option Skews: Relatively Heavy Call Activity on Bank of America Corp, Citigroup Inc, and Apple Inc

^{Published on 2009-02-18 08:32:19, Last Modified on 2009-02-18 08:32:49 - Market Wire}
 

CINCINNATI--([ BUSINESS WIRE ])--Bank of America Corp (NYSE: BAC), Citigroup Inc (NYSE: C), and Apple Inc (NASDAQ: AAPL) were among the stocks seeing heavy call buying on Tuesday.

Regular readers may note that Bank of America and Citigroup frequently appear in this scan and were just discussed on Friday. I thought they were worth touching on again because the optimism just keeps building. Over the last 5 days, there have been 52,498 Citigroup calls bought on the ISE. This compares to 28,329 put buys. Bank of America is even more popular. Over the same time frame there have been 95,633 calls bought to "only" 33,190 puts. This gives us a net skew of 24,169 calls on C and a net 62,443 call skew on BAC. As noted Friday, this suggests that some are front-running an expected bounce.

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