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


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »