Turning to the calls side of the option chain, the call contract at the $45.00 strike price has a current bid of 72 cents. If an investor was to purchase shares of WFC stock at the current price level of $44.34/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $45.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.11% if the stock gets called away at the March 14th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if WFC shares really soar, which is why looking at the trailing twelve month trading history for Wells Fargo & Co., as well as studying the business fundamentals becomes important. Below is a chart showing WFC's trailing twelve month trading history, with the $45.00 strike highlighted in red:
March 14th Options Now Available For Wells Fargo (WFC)
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.