27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Wells Fargo & Co (NYSE: WFC) shares recently saw a sharp increase, following the company reporting its Q4 results, more than recovering from the significant pullback in September 2016. Argus Stephen Biggar analyst downgraded the rating on the company from Buy to Hold.
“Our downgrade reflects the rebound in WFC shares since the November 8 election, as well as prospects for additional revenue headwinds as the company works to repair its reputation,” the analyst explained.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The stock had seen a sharp decline in September due to the revelation that Wells Fargo’s employees had opened many fraudulent accounts to meet the company’s aggressive sales targets.
“In particular, bank employees opened new accounts with customer funds without disclosing this to customers. The company has taken a number of steps to restore customer trust. It terminated more than 5,000 employees connected with the fraudulent practices,” Biggar mentioned.
Wells Fargo also made amends for customers who had experienced late charges or other penalties associated with the fake accounts, and ended up paying $185 million in settlement charges to the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the county and city of Los Angeles.
The company has now eliminated product sales targets within its retail franchise, while hiring an outside firm to analyze deposit and credit card accounts opened between 2011 and 2015.
Q4 Results
On January 13, Wells Fargo announced its Q4 results, with EPS of $1.03, beating the consensus. Revenue came in flat at $21.6 billion.
“Along with the 4Q results, the company noted a decline in visits to retail branches, which we believe will have a lingering effect on account openings. There have also been reports of fallout in other WFC businesses, such as wholesale banking, where some municipalities have temporarily suspended activity with the company,” the analyst added.
Biggar believes the stock is fairly valued, given Wells Fargo’s current revenue headwinds.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.