Options Update: Wells Fargo (WFC) & Wachovia (WB)

Options Unusual Activity

Options Update: Wells Fargo (WFC) & Wachovia (WB)

Posted October 3rd, 2008 by The Options Insider in Unusual Activity

Wells Fargo (WFC)
WFC Volatility At 97; WFC Agrees To Merge With Wachovia

WFC and WB said they have signed a definite agreement for the merger of the two companies including all of WB's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corp (FDIC).

WFC is recently trading at $36.11, above its close of $35.16.

WFC October option implied volatility of 97 is above its 6-month average of 50, suggesting larger price movement.

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Wachovia (WB)
WB Volatility Elevated; WB & Wells Fargo To Merge

WFC and WB said they have signed a definite agreement for the merger of the two companies including all of WB's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corp (FDIC).

WB is recently trading at $6.50 in pre-open trading, above its close of $3.81.

WB over all option implied volatility of 145 is above its 6-month average of 72, suggesting larger price movement.

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