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September 21, 2016  Wed 11:33 AM CT

WFC : SEE CHART GET CHAIN FIND STRATEGIES

Wells Fargo is drawing large downside option activity.

optionMONSTER's tracking program detected the purchase of more than 29,000 October 40 puts for $0.12 to $0.18 today. This represents fresh buying, as volume was more than 5 times the open interest in the strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

WFC is down 1.99 percent to $45.63 in afternoon trading and has fallen 4 percent in the last month. The bank is scheduled to announce quarterly results in pre-market hours on Oct. 14.

Overall option volume in the name is twice its daily average so far today.

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