TopOptionAlert
Oct 20, 4:58 AM
$WFC NOV20 85C · still actionable
Zone:
$81.23 to
$82.37
Invalidation: close under
$79.54
Objectives:
$87, then
$92
The math: up 6.4% to the first objective and 12.5% to the second, against 2.8% risk on the invalidation, better than 4 to 1 to the second
Dear friend, this is a simple swing idea on a name that just got knocked down after earnings are already behind it. Wells Fargo closed at
$81.80 after a rough day, and it is sitting just above the
$81 area where buyers stepped in before, which means the risk is easy to see and easy to respect. What that means for you is you are not chasing strength here, you are watching for a bounce back toward the
$87 to
$90 area where sellers showed up last time, and the close under
$79.54 tells you the idea is wrong.
P.S. The one thing to watch next is whether
$81 holds on a closing basis this week.
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