Bulls Charge in to Wells Fargo
"Fast Money" Contributor
Traders piled into upside option positions in Wells Fargo yesterday.
The April 33 calls lit up OptionMonster’s tracking systems right out of the gate, and volume quickly blew past previous open-interest levels. Almost 40,000 of the contracts had traded by the end of the session, going early for $0.30 in large blocks and rising past $0.50 later in the day.
Calls lock in the price that traders must pay to buy shares. That can provide major leverage to the stock, but the calls will also lose value if there is no rally.
Wells Fargo shares opened yesterday a high note and remained strong all day. Its stock closed at $31.40, up 3.26 percent on the session.
Callsdominated the option activity in the name, outnumbering puts by about 87,000 to 22,000. The bank’s overall option volume was more than twice its average amount.
—Najarian owns WFC calls.
Additional News: Wells Fargo Growing Through Europe Acquisitions: CFO
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