OptionsHouse

Options Trading News

December 26, 2012  Wed 8:58 AM CT

WFC: SEE CHART GET CHAIN FIND STRATEGIES
Wells Fargo is seeing an unusual call trade this morning.

A trader sold 4,590 January 22.50 calls for the bid price of $11.90 against open interest of 5,387 contracts, according to optionMONSTER systems. At the same time, he or she bought the same number of the January 2015 25 calls for the ask price of $10.20 against open interest of 1,434.

This could be a new diagonal spread but is more likely a a roll, with the trader selling to close the earlier position, which is deep in the money and expiring in less than month, and buying calls with two years left to trade. (See our Education section)

WFC is trading at $34.43, up a penny on the day. The banking stock bounced off support around $31.50 a month ago and last week filled a down gap from early October, but it ran into resistance at $35.
Share this article with your friends


Related Stories

WFC

How one bull is playing Wells Fargo

March 13, 2015

The bank bounced sharply off its 50-day moving average yesterday as the financial sector rallied with results from the Federal Reserve's latest stress tests.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »