On Friday’s CNBC’s Options Action, the crew analyzed Wells Fargo’s (WFC) recent underperformance due to its fiasco over fake accounts. Analyzing the spread between WFC and its peers, suggested a possible mean reversion trade. WFC has had top line revenue growth that outperformed its peers while just setting a new 52 week low recently. Expecting a bounce higher, Michael Khouw suggested buying a Dec 45 Call for $1.45 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action