Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome

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 (NYSE: 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.

Posted-In: Alan Knuckman Bloomberg MarketsOptions Markets Media


Related Articles (WFC)

View Comments and Join the Discussion!

United, Priceline, Goldman Sachs: Fast Money Picks For April 18

Todd Gordon's iShares Russell 2000 Index ETF Options Trade