Bet on This Bank Stock to Make Moves Higher

Core Insights - Bank of America Corp (NYSE:BAC) stock experienced a significant pullback but has quickly regained its 20- and 50-day trendlines, indicating a potential recovery [1] - The stock rebounded from key technical levels, including the 20-week exponential moving average and the February 2022 peak anchored volume weighted average price (AVWAP) [1] - Despite a broader market selloff, BAC's price action shows strength, with recent lows aligning with the front three-month peak put 35 strike [1] Options Activity - At the International Securities Exchange, Cboe Options Exchange, and NASDAQ OMX PHLX, BAC's 50-day put/call volume ratio is higher than 92% of readings from the past year, indicating increased bearish sentiment among traders [2] - The current options premium for Bank of America stock is reasonably priced, with a Schaeffer's Volatility Index (SVI) of 23%, which is in the 18th percentile of its annual range [2] - The Schaeffer's Volatility Scorecard (SVS) stands at 77 out of 100, suggesting that BAC has exceeded options traders' volatility expectations over the past year [2] Analyst Ratings - There is potential for upgrades, as 14 out of 24 covering brokerage firms maintain a "hold" or worse rating on BAC [3] - A recommended August call option has a leverage ratio of 7.96, which would double with a 12.96% increase in the underlying shares [3]