Options Traders See Bottoms in Wells, Colgate By Rebecca Darst About this article: Shares in Wells Fargo are down 1.2% to $27.23 as option traders seek opening long positions in January $24 puts at $3.10 apiece. The 5,000 lots bought here are identical to another 5,000 lots at the $20 strike that sold on the same exchange within the same half hour, suggesting a long put spread strategy deployed (although the activity is not designated as such on the tape) to limit the net cost of the position to $1.10. The presence of a spread involving these strikes is significant because the sale of the lower strike immediately implies that the trader believes that $20 will remain a durable support level for Wells Fargo into January, keeping the Nov. 21 low intact. Implied volatility at 111.5% for all Wells Fargo options shows a slight premium to the 106.9% historic reading, but barely a percentage point change from yesterday's levels.... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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