Short-term Protection Purchased on Wells Fargo (WFC)
Shares of Wells Fargo & Company (WFC) are trading higher on the session by 1.59%, at $35.08. The stock has been ticking higher over the past four months after a successful test and hold of the 200-day moving average.
Wells Fargo touched a 52-week high of $36.60 on September 14th, however, one options trader is buying protection on the name today.
Shortly after the opening bell, the October 5w $34.50 put was purchased 2,584 times, on the offer, for $0.18-0.20. The trader came back minutes later and purchased another 1,594 puts, on the offer, for $0.19-0.21.
Total volume on the strike is 4,182 contracts, which eclipses current open interest of 604; this indicates new positioning on the name.
Current near-term implied and historical volatility is registering 21% and 22%, respectively, just off of yearly lows of 17% and 6%. At an average of $0.20, the Oct 5w $34.50 put traded at 24% vol.
Wells Fargo & Company is a bank holding company. It has three operating segments: Community Banking Wholesale Banking and Wealth, Brokerage and Retirement.
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