Investors in Wells Fargo & Co (WFC) are seeing new options trading commence today for a March 2027 expiration, offering potential opportunities for those interested in options trading strategies. The put contract at a $65 strike price currently has a bid of $4.95, allowing investors to set a cost basis of $60.05 per share if executed. This represents a 16% discount from Wells Fargo’s current trading price of $77.03, with a 76% likelihood of the put expiring worthless, providing a potential 7.62% return on cash commitment.
On the call side, the $80 strike price has a current bid of $7.40. If shares are purchased at $77.03 and the call is sold, investors could achieve a total return of 13.46% if the stock is called away by expiration. However, there’s a 47% chance the call contract may also expire worthless, allowing investors to retain their shares and the premium collected, resulting in a potential 9.61% return. The implied volatility for the put is at 38% and for the call at 34%, compared to an actual trailing volatility of 29%.
