Wells Fargo Traders Pile Into Upside Options

Bulls charge in to Wells Fargo By Pete Najarian, co-founder of OptionMonster.

NEW YORK ( TheStreet) -- Traders piled into upside option positions in Wells Fargo ( WFC) on Thursday.

The April 33 calls lit up OptionMonster's tracking systems right out of the gate, and volume quickly blew past previous open-interest levels. Almost 40,000 of the contracts had traded by the end of the session, going early for 30 cents in large blocks and rising past 50 cents later in the day.

Calls lock in the price that traders must pay to buy shares. That can provide major leverage to the stock, but the calls will also lose value if there is no rally.

Wells Fargo opened Thursday a high note and remained strong all day. It closed at $31.40, up 3.26% on the session.

Calls dominated the option activity in the name, outnumbering puts by about 87,000 to 22,000. The bank's overall option volume was more than twice its average amount.

Najarian owns WFC calls.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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