Condor. It appears that a player opened a substantial Condor on Wells Fargo (WFC), with the purchase of blocks (10,000) of July 15 and 30 puts and the sale of similar blocks of July 22.5 and 25 puts. If so, the trade has a bearish bias and will yield maximum profits if WFC falls between the two short strikes (22.5 and 25) by July options expiration. However, substantial losses are also possible if the stock makes a significant move below $18.80 a share. Upside breakeven is around $28.70. WFC was recently down 16 cents to $30.63.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.