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WFC (Wells Fargo) The Comeback It is a rough time for many banks, But that does not mean it is necessarily going to stay like this. With Warren Buffet currently increasing his stakes in the BAC (Bank of America), Whom also holds large similar stakes in Wells Fargo with both being extremely similar especially on the charts. We could actually see Wells Fargo stock vastly increase, Now i am not saying it isn't going to be a bumpy ride with the current stop and starting of the economy worldwide but quite frankly because of Wells Fargo poor performance it has provided a great opportunity for investors. So to wrap it all up if Wells can catch up with the Bank of America (BAC) in the pre provisioning operating profits then the stock value could nearly double providing a great investment opportunity. Whilst provision charges can fluctuate violently through the cycle, pre-provision profit does not flex to anything at the same extent. When provision charges fall away after a recession, The bottom line starts to improve rapidly which is what we could see happen in the upcoming weeks/months/years. Disclaimer: I am not advising anyone to take any trades nor do i bare responsibility for any losses, Furthermore I am only sharing my analysis & speculation for you to make your own decisions. Do your own analysis and use the correct risk management. Dont bet the house.
NYSE:WFCLong
by OfficialKieranTrewick
THE WEEK AHEAD: DAL, WFC, NFLX EARNINGS; XOP, GDXJ, EWZEARNINGS: A bunch of earnings next week, particularly in the financials sector: C (40/58/14.1%): Tuesday before market open. DAL (50/95/23.0%): Tuesday before market open. JPM (38/49/12.1%): Tuesday before market open. WFC (58/63/15.4%): Tuesday before market open. GS (31/48/11.7%): Wednesday before market open. EBAY (71/56/13.4%): Wednesday before market open. IBM (47/43/10.0%): Wednesday before market open. BAC (36/52/13.1%): Thursday before market open. JNJ (29/28/7.2%): Thursday before market open. MS (35/51/12.3%): Thursday before market open. NFLX (50/60/14.5%): Thursday before market open. From the standpoint of what the August at-the-money short straddle is paying, you appear to get the most bang for your buck out of DAL (23.0%), followed by WFC (15.4%) and NFLX (14.5%). Because so many financials are announcing, I did consider a short premium play in the sector exchange-traded fund, XLF (29/41/10.4%), but the August at-the-money short straddle is paying just a smidge over 10% of the stock price relative to WFC (15.4%), C (14.1%), BAC (13.1%), JPM (12.1%), and GS (11.7%), so it's potentially more worthwhile to go single name for the volatility contraction here and to look to WFC to get the most buck banging. Unfortunately, strike granularity for WFC out in August remains pesky, with 2.5 wides where I'd want to set up my tent. For what it's worth, the 22.5/30 paid 1.42 as of Friday close, with the shorts camped out around the 23 delta. To me, airlines remain a bullish assumption play from these levels, and DAL is no exception. Consider out-of-the-money short put: the August 21st 20 delta 22 is paid 1.06 as of Friday close or another bullish assumption setup such as a Zebra, buying 2 x the 70 delta calls and selling the 50, potentially calendarizing the setup so that you have more time to reduce cost basis (e.g., buy 2 x December 18th 23 calls, sell the August 21st 27). Pictured here is a NFLX August 21st 455/465/680/690 iron condor with the shorts set up at the 16 delta as of Friday close. The market's showing wide on this setup, but look to get at least one-third the width of the widest wing (i.e., for a 10-wide, at least 3.33). You'll probably have to fiddle with the strikes given the amount of movement it's experiencing. EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR >35% 30-DAY IMPLIED: EWW (42/40/10.0%) GDXJ 40/55/13.73%) XLE (38/50/12.6%) GDX (34/41/11.0%) EWZ (29/48/12.1%) SMH (26/36/9.2%) XOP (25/61/15.8%) USO (7/53/15.8%) XOP (15.8%), GDXJ (13.73%), and EWZ (12.1%) have the most juice as a function of buying power ... . BROAD MARKET: Currently, no broad market with an August at-the-money short straddle paying greater than 10% of the stock price, but if you feel compelled to play, IWM (42/38/9.4%) is paying the most as a function of stock price. IRA DIVVY-GENERATORS SCREENED FOR AUGUST SHORT STRADDLE PAYING MORE THAN 10% OF STOCK PRICE: EWZ (29/48/12.1%) (Current Yield: 3.36%)
NASDAQ:NFLX
by NaughtyPines
12
Wells Fargo - show me some loveOne of the big four is again similar in 2008 facing uncertainty. Last time the Fed asked them if they see a dark future in its capability to withstand the crisis. Now again, WFC is at some risk but is it really? Ok, slashing 50% of the dividend may sound discouraging and you can see it from the price movements. Nevertheless, the risk this time is not comparable and WFC will once again endure the period of fear and uncertainty and move up. This is an amazing chance to accumulate a "don't touch this stock" while its trending this low. Besides, if it gives you a 25c dividend it is still returning a very good %. I just can't keep away from buying it. Maybe purchase in lots for every$1 move down.
NYSE:WFCLong
by badbeatnuts
2
WFC - POSSIBLE LONG SCENARIO(Reuters) - U.S. lender Wells Fargo said on Wednesday it had signed multi-year purchase agreements for renewable energy with Royal Dutch Shell's units, as it progresses toward its clean energy goals. The agreements would involve the development of new utility-scale solar installations in several counties, the lender said in a statement. Wells Fargo did not disclose the size of its investment but said it would be able to meet the energy needs of about 1,200 properties in California and the mid-Atlantic states. Many corporates have committed billions of dollars to fund green projects and pledged to reduce their carbon footprint, while some banks have said they would cut exposure to fossil fuel funding. Wells Fargo has been meeting all its annual global electricity requirements with renewable energy since 2017 and is now working to set up longer-term contracts and increase power generation from on-site renewable sources.
NYSE:WFCLong
by crypto_poet
TRADE IDEA: WFC OCTOBER/JULY 22.5/35 LONG CALL DIAGONALAnother financial that has recovered some, but probably has some room to run back to pre-COVID-19 levels .... . Metrics: Max Loss on Setup: $918 Max Profit on Setup: $332 Break Even: 31.68 versus 32.63 spot Debit Paid to Spread Width Ratio: 73.44% Notes: I like to do these split month, but there's no September available, so had to go out to October to buy the 90. Manage like a covered call, rolling the short call out on extrinsic approaching worthless and, if necessary, down (but not past) your break even.
NYSE:WFCLong
by NaughtyPines
WELLS FARGO ($WFC): Are They Gonna Send this Back to the 1800's?✨ New charts every day ✨ Like, Comment & Follow to help the community grow 🎉🎉 --- Depressing revenue and earnings predictions and a potential dividend cut aside, it is hard to justify shorting the big banks. Despite this, Wells Fargo's chart looks particularly bearish. While it is likely WFC will preform well in the future, it looks like for now this company founded back in the 1800's is about to get sent back to the 18.00's or lower. Given that, let's look for a short setup. Resources: www.earningswhispers.com + www.marketwatch.com --- 1. Fractal Trend is showing a downtrend (Maroon bar color) on the Daily timeframe chart. This makes sense given how the big banks have struggled in terms of share price while dealing with COVID. 2. With this strategy, we are looking for short setups in a downtrend and as such want to enter short on retests of bearish order blocks plotted by Orderblock Mapping (Maroon) and/or bearish S/R levels plotted by Directional Bias (Maroon). 3. As you can see, we are close to getting a short entry from the strategy at R1. The goal here is to see a rejection of this level and continuation to the downside. 4. The target for this move is S2, although we will look for reactions at S1 and consider scaling a portion of our position off there to lock in profits. 5. We will exit this trade if our stop is reached or if Fractal Trend signals an uptrend (Aqua) while our trade is still open. With all that said, it should be noted that a drop of this magnitude for the big banks represents a move not seen since 2009 back in the wake of the Financial Crisis. Thus, even though the setup makes sense, it also makes sense not to be overly aggressive with this short's position size and consider it more of an overall market hedge.
NYSE:WFC
by AlphaBotSystem
5
Dare Catch A Knife? Wells Fargo.Wells is now off more than 50% since the start of the Coronavirus pandemic. However, Wells suffers from much more than a pandemic: Over the last two years, scandals around nefarious sales practices, some unfortunate executive departures, and an inability to grow top line has hit them hard, and the crisis has hit them especially hard in revenue terms. We're now looking at 2012 levels, not too far from where we were during the financial crisis. Peak to trough in 2009 we saw a 69% decline in $ NYSE:WFC ... more to go here?
NYSE:WFC
by CrosbyVenture