WFC Forecast + Trading Strategies


Bullish Case: WFC's implied volatility is generally below the market's expectation, signaling market confidence. Recent bullish trends in earnings and the financial sector support a constructive outlook.


Bearish Case: Persisting legal and regulatory challenges may outweigh bullish sentiment. High short-term implied volatility suggests market concerns, possibly driven by macroeconomic uncertainties and sector vulnerabilities.


Potential Outcomes: WFC beats earnings estimates (50%); sector stability drives continued growth (35%); ongoing legal and regulatory issues impact negatively (15%). Estimated probabilities reflect recent trends and expected market moves.


Trading Oracle: Trade cautiously with bullish debit spreads. Buy Aug '24 $60.0 call options, sell $65.0 call options. Current IV favors spreads, hedging against volatility spikes. Align plays with potential earnings beat and regulatory stabilization. Timeframe: 1-2 months, high reward:risk.


July 11, 2024


Wells Fargo Forecast

WFC      Wells Fargo











Correlated Assets

Assets that tend to move strongly with WFC



FITB Forecast + Options Trading Strategies   FITB  Fifth Third Bancorp (0.97)


XYL Forecast + Options Trading Strategies   XYL  Xylem (0.96)


GS Forecast + Options Trading Strategies   GS  Goldman Sachs Group (0.96)


XLF Forecast + Options Trading Strategies   XLF  Financial Select Sector SPDR (0.96)


JPM Forecast + Options Trading Strategies   JPM  JPMorgan Chase (0.96)



Uncorrelated Assets

Assets with little price relationship to WFC



NVAX Forecast + Options Trading Strategies   NVAX  Novavax (0.0)


CTRA Forecast + Options Trading Strategies   CTRA  Coterra Energy (0.0)


WY Forecast + Options Trading Strategies   WY  Weyerhaeuser (-0.0)


RUN Forecast + Options Trading Strategies   RUN  Sunrun (0.0)


GUSH Forecast + Options Trading Strategies   GUSH  Direxion Daily S&P Oil & Gas Exp. & Prod. (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against WFC



VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.9)


FWRD Forecast + Options Trading Strategies   FWRD  Forward Air (-0.9)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.91)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.93)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.93)





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