Wells Fargo (WFC) May 22.5 put has jumped to the top of today’s most actively traded equity options contracts. WFC rallied 23.6 percent yesterday after Warren Buffett said the bank has enough capital to weather the economic storm and ahead of stress tests later this week. Shares are down $1.25 to $23 today, however, after the Wall Street Journal reported that ten of the 19 banks undergoing tests will need to raise capital. WFC was mentioned as a possibility. 21.7K WFC May 22.5 puts traded so far. Recent trades also include a multi-exchange sweep of 8,150 June 23 puts at the offer for $3.40.
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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.