Deep-pocketed investors have adopted a bearish approach towards Wells Fargo (NYSE:WFC), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in WFC usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 19 extraordinary options activities for Wells Fargo. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 26% leaning bullish and 73% bearish. Among these notable options, 4 are puts, totaling $125,793, and 15 are calls, amounting to $1,375,885.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $37.5 to $62.5 for Wells Fargo over the last 3 months.
Analyzing Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Wells Fargo's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Wells Fargo's substantial trades, within a strike price spectrum from $37.5 to $62.5 over the preceding 30 days.
Wells Fargo Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| WFC | CALL | TRADE | BULLISH | 06/21/24 | $1.2 | $1.07 | $1.15 | $62.50 | $540.5K | 16.9K | 4.0K |
| WFC | CALL | TRADE | NEUTRAL | 01/17/25 | $22.75 | $22.2 | $22.5 | $37.50 | $225.0K | 7.2K | 100 |
| WFC | CALL | SWEEP | BEARISH | 06/21/24 | $1.17 | $1.16 | $1.16 | $62.50 | $84.3K | 16.9K | 4.0K |
| WFC | CALL | SWEEP | BULLISH | 04/19/24 | $12.15 | $12.0 | $12.1 | $47.50 | $72.6K | 12.6K | 60 |
| WFC | CALL | SWEEP | BEARISH | 04/19/24 | $1.09 | $1.01 | $1.02 | $58.00 | $61.2K | 9.2K | 1.0K |
About Wells Fargo
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
In light of the recent options history for Wells Fargo, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Current Position of Wells Fargo
- Trading volume stands at 2,194,811, with WFC's price up by 1.34%, positioned at $59.53.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 84 days.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.