Cabot Options Institute Income Trader: Alert (WFC)
Wells Fargo (WFC)
As part of the Income Wheel approach, we allowed our Wells Fargo (WFC) puts to expire in the money at expiration last week. As a result, we were issued shares at our chosen put strike of 45. So far, we’ve managed to lock in 18% worth of premium in WFC.
Today, as our Income Wheel strategy states, we are going to sell calls against our newly issued shares in WFC.
We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in WFC. For those of you that are new to Income Trader and wish to follow along with WFC, buying at least 100 shares of WFC for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for WFC.
WFC is currently trading for 43.44.
Here is the trade:
Sell to Open WFC October 20, 2023, 44.5 (covered) call for $0.89 (adjust accordingly, prices may vary from time of alert).
As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.