Trader bet 1.2 million. Dollars of the shares of Bank of America .. and lost

The recent upswing in the shares of Bank of America (the shares of the bank grew by 11.4% last month) makes the bank very attractive to many traders who are hoping that their potential is not yet exhausted. In confirmation of this sentiment comes a 1.2-millionth bet that could bring major benefits to the person who did it.
Tuesday unknown trader bought 100,000 weekly call options at a price of 12 cents per share, or $ 12 per option contract, informs CNBC. The options have a strike price of $ 16 and a maturity date of September 2 (Friday). By the time the transaction was concluded, the shares of Bank of America traded at a price of 15.90 dollars a share. Trader will break even at the price of 16.12 dollars per share.
If at the close of New York Stock Exchange tomorrow the price is below $ 16, the entire premium of 1.2 million will be lost. However, such a scenario is unlikely, at least according to market maker Brian Statland who predicted that the share price of Bank of America may climb to 16.88 dollars in cash in the short term. If shares of the bank closed this or higher price tomorrow (September 2), the trader will profit by 633% on their investment, or 7.6 million dollars.

Yesterday, shares of Bank of America closed at a price of 16.14 dollars per share.