WFC - Wells Fargo, let’s rob this stagecoach! (Ascending Channel, Bollinger and RSI)

@ryantrule pointed out this morning that he thought WFC 50c 3/25 looked good. Well I agree after spending sometime on TradingView.

I have had mixed results trading based on these types of signals I lost money trying to do this with FIS but made a HUGE stack doing this with FCX. When it works you can really rake it in.

I will probably go in pretty heavy on this one, I really like where it is after a couple dips below 40 on RSI.

It has a great catalyst with interest rate increases right on the horizon. It seems like a 0.25% increase is priced in but we could see the Fed go for a 0.50% which should kick this stock up.

Some Info:

-Earnings 4/14
-Morning Star Fair Value $62.00

I am looking at:

MARCH 18 $50 CALLS
APRIL 14 $55 CALLS

Thanks Y’all!

15 Likes

Thanks!

I think I saw @ryantrule mention the $50 mar 25 call might be safer than the mar 18, since the rate hike announcement comes on the 15th or 16th, cutting pretty close to the mar 18 cutoff.

I plan to take a starter position on Monday, probably the mar 25 $50c

4 Likes

Agreed now that you say so 3/25s look much safer for play to pan out properly.

5 Likes

From a fundamental pov, just remember that wfc still has an asset cap in place due to all the shenanigans from a couple years back.

1 Like

Took a $49C for Mar 25th at what looked like a double bottom (narrator: it wasn’t). Have an order open for a $50C as well, same expiry.

1 Like

I bought a couple 3/25 50c and was sitting good for a while. Down 14% right now but I think they’ll come back.

2 Likes

Down 25% on my calls. I’m gonna either avg down tomorrow or cut depending on how well wfc bounces

1 Like

Down 20% here, will average down tomorrow if necessary. Just a bloody day in the market but I like this play.

2 Likes

Picked up a few 4/14 50c today trying to average in but ended about 17% down on my position eod. Had a nice try in the afternoon but I think SPY had the last laugh on this today.

I liked the DD on this and boughtt 2 3/25 51C @.49. Just sold at 0.75. I may look for another entry later on but that was great profit for me. Cheers!

2 Likes

Took profit on my March 25 $50C. Bought at $1, just sold at $1.20. 20% banger.

I still have my $49C open, but the limit sell is quite close as WFC is currently at today’s high.

I may buy back in if we see another drop down to the levels I bought at.

1 Like

My $49C just sold. Bought $1.40, sold at $1.75 for a 25% banger

Now looking for re-entries. Hope I didn’t shoot myself in the foot, but these are solid profits after bungling the entry yesterday.

1 Like

Thank you @Jekyll_and_Hyde for this play! Just got out with 80%. Ready for the next one :+1:

2 Likes

That’s awesome, way to go. Yup, big ups to @Jekyll_and_Hyde on this play. I got out a few days ago but happy with a nice 18% gain. Yew!

2 Likes

Right on. Props to those whole held. Today should’ve been significantly green for anyone who got in at the time thread was posted.

I was hoping to get back in, but WFC gapped up and stayed up all day.

We haven’t gotten to the expected catalyst yet, so I’m hoping to find an entry before next week

4 Likes

Anyone looking to re-enter on todays dip in price?

1 Like

I just received CFPB notice that they will be releasing policy guidance today relating to the crackdown and consequences of of manipulation or suppression of consumer reviews of financial products, including credit cards and mortgages (the highest marketed financial products currently on the market). This is related to the FTC’s efforts to deter fake reviews and related fraud across digital economy, and this includes third party websites that include customer reviews and ratings. The guidance will address practices that are unlawful under the CFPAct, including contractual gag clauses, fake reviews, and review suppression or manipulation.

With Wells Fargo’s spotty history in consumer honesty, they may take a hit when the guidance is released due to sentiment alone - regardless of what their current policies and practices are.

3 Likes

Guidance has been released:

2 Likes

@Jekyll_and_Hyde What do you see as a good buy-in if we’re trying to take a position for March?

1 Like

This was the most recent news I could find that may explain this slow, torturous slide down…inflation worry sending banks into a holding pattern/downward slide til earnings report. WFC is 4/14, so not looking too hot for the 4/14 52.5s I’m holding. May will hopefully be a different story, but it kind of seems the reality of the world news is kind of setting in on the market the last week or two…

Edit 2- World's top banks pumped $742 bln into fossil fuels in 2021 - report | Reuters

This certainly isn’t helping investor sentiment either

Edit 3- Will NYC Bar Wells Fargo From Municipal Deposits After Alleged Discrimination Against Black Homeowners? - THE CITY

Sigh

1 Like