Wells Fargo (WFC) Offering Possible 23.46% Return Over the Next 40 Calendar Days

Wells Fargo's most recent trend suggests a bearish bias. One trading opportunity on Wells Fargo is a Bear Call Spread using a strike $52.50 short call and a strike $57.50 long call offers a potential 23.46% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $4.05 would be incurred if the stock rose above the $57.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Wells Fargo is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Wells Fargo is bearish.

The RSI indicator is at 35.44 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Wells Fargo

WELLS FARGO & COMPANY/MN Files SEC form 8-K, Financial Statements and Exhibits
Mon, 12 Jan 2015 21:58:50 GMT

Bros or Insider Traders? Ex-Wells Fargo Colleagues Seek to Dismiss SEC Case
Mon, 12 Jan 2015 19:12:11 GMT

Big year for big banks?
Mon, 12 Jan 2015 17:41:00 GMT

Traders turn on financials
Mon, 12 Jan 2015 17:16:00 GMT

This is the most important thing to watch this week
Sun, 11 Jan 2015 14:18:13 GMT
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