Refinancing activity is expected to slow down, although original mortgages will likely more than offset lower refinancing revenue. Higher interest rates also mean larger spreads between the average cost of capital rate and the lending rate the bank can charge.

Wells Fargo financial strength is among the strongest in the space. It's one of the very few large banks that didn't need a bailout when the housing market crashed. The attractive 2.7% dividend isn't in jeopardy, and investors should view retracements as buying dips.

If the volatility lately is a little more than you're comfortable with, you can look to options to mitigate the ups and down to your portfolio while simultaneously reducing your risk. Looking at the options chain, I see October $45 strike calls trading for about 75 cents.

By selling covered calls, you continue to receive your dividend payments while also receiving option premium. The call options will move higher and lower with the shares, although not as much, thereby reducing your portfolio's volatility.

At the time of publication, Weinstein had no positions in stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences.

In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

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