WFC has been trading between $26.50 and $29.50 since last August, with a major breakout and breakdown to help keep everyone interested.
The shares are trading at $27.79, support is at $26.40 and resistance is at $29. So there's a fairly easy 6% of upside.
There's no clear trend on the price, so I wouldn't do a directional trade on this.
It would make a decent iron condor, with a maximum profit range skewed to the upside a bit, say between $27 and $29, for a 48-cent credit.
It has excellent financials and good analyst ratings. With greater confidence in the upside, it could be traded as a covered call, for a 80-cent premium on the $28 strike. Although the returns, 2.9% on expiry and 3.9% on exercise, are below my guidelines.
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Topic: Wells Fargo bank financial
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