IN the last few days, since Bank of America took a dive on its earnings, the stock has found some real strength. BAC is now just a few cents from its 52 week high and threatening a 2 year high. The move has not been a slow grinding move like we see sometimes out of banks. It’s been a nice quick move.
This is why I am so confused by where BAC IV is trading. Take a look at this stock chart, IV graph (the red line) and 20 day HV chart (the blue line).