BAC Broken-Wing Bear Call — 2026-10-16

BAC (Bank of America Corporation Common Stock): $557K of buyer-initiated unusual put flow (100% put-dominant), IV rank 40 (moderate). Our gamma model reads BAC in a NEGATIVE-gamma regime (net GEX -6.0M, flip —) — dealers are short gamma and amplify moves, so this is defined-risk only and leans with the flow. Structured as a Broken-Wing Bear Call (sell $55C / buy $56C) expiring 2026-10-16 (14 DTE) — negative-gamma (trend/gap risk) → defined-risk broken-wing leaning with flow. Net credit $32, max loss $69 (defined risk). Breakevens $55.32.

Underlying: BAC @ ~$53.68 | 2026-10-16 (14 DTE) | Net credit (entry): ~$32 per spread. Use limit orders at the mid or slightly better.

ENTRY: Put on the broken-wing call spread: sell the $55 call, buy the further-OTM $56 call with a WIDER gap on the far wing, expiring 2026-10-16 (14 DTE), as one order at a LIMIT of the mid or better — target net credit $32. IV rank 40 is moderate — credit is workable but define risk and don't oversize. The skew removes downside risk while collecting a credit; the upside gap is the residual max loss ($69). | TAKE PROFIT: Buy it back to LOCK IN gains at ~50% of the $32 credit. Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near BAC's short strike(s) — currently 14 DTE, so plan the exit 0 day(s) out. Below $55 the whole credit is yours — take profits, don't carry the tail. Breakeven $55.32. | IF TESTED: The risk is a sharp rally into the wide wing. When BAC tests the $55 short call (delta ~0.30) or loss ≈$64, roll the structure UP and OUT ~7–14 days for a credit, or buy an extra long call to square the wing into a symmetric (fully defined) spread. Treat a close above the $55 call wall as the hard trigger to act (the resistance magnet has broken). dealer gamma is NEGATIVE (vol-amplifying) — moves accelerate here, so defend one trigger EARLIER than usual and don't wait for the strike to go in-the-money; put wall (support) at $55; call wall (resistance) at $55. If price reaches the $56 wing, you're at max loss ($69) — take it. EARNINGS: a report (2026-10-14) falls inside this trade — the post-print IV crush helps a seller, but the gap can jump a short strike, so do NOT add size into the event and be ready to take the defined-risk loss if it gaps through. | MAXIMIZE: Holding below $55? Let theta collect the full credit. Once most is banked, roll down toward the money next cycle for a richer credit, or add a put spread to convert into an iron condor if flow turns two-sided.