Bank of America stock: options market predict a jump to $57 after earnings

Impact · against what's priced in

The news is neutral to slightly negative for Bank of America as projected Q3 revenue growth (8.7%) continues to lag significantly behind the aggressive growth trajectory the current valuation requires. Options market speculation of a move to $57 is a technical trade rather than a fundamental shift in the bank's growth profile.

BAC−0.10

Already priced in

The price assumes

The absence of any near-term acceleration, given the price requires 25.9% revenue growth but the company just delivered -0.5%.