Alan Knuckman's Bullish Wells Fargo Trade

Speaking on Bloomberg Markets, Alan Knuckman of Bulls-Eye Option recommended a long position in Wells Fargo & Co WFC.

He thinks the stock is going to trade higher because its problems are not fundamental. The bank doesn't have a problem with its profitability, it has a public relation problem, explained Knuckman.

He wants to open a long position in Wells Fargo by purchasing the June 2018, 45 strike call for $9.00.

The trade breaks even at $54 or 2.43 percent above the current market price. Knuckman explained that delta for the option is going to be around 0.80, which means that it is going to move almost like the stock.