Calendar Spread Trades on Wells Fargo (WFC)
Shares of Wells Fargo & Company (WFC) are trading lower on the session by 1.40%, at $33.77. The stock had been consolidating nicely, but careened lower last week, breaking through the 50-day moving average in the process.
With shares trading near a three-month low, one institutional trader is initiating a calendar spread today. A short while ago, the October $35.00 put was purchased 17,341 times, on the offer, for $1.20 just as the November $35.00 put was sold 17,341 times, on the bid, for $1.68.
This appears to be fresh positioning considering the nature of the trade, but we will have to wait for open interest to reset tomorrow to confirm. Current open interest on the strikes is 35,173 and 5,325, respectively.
30-day IV is registering 20.20%, up 3.0% on the session, while 10-day historical vol is at 21.81%.
Wells Fargo & Company is a bank holding company. It has three operating segments: Community Banking Wholesale Banking and Wealth, Brokerage and Retirement.
View Michael Zerinskas's post archive >