BY LICIA LESLIE 

August 27, 2023 

Hi Shoppers,

As Fitch was downgrading the US debt, here at Option Pit we were giving out our best trade ideas regarding the news and the next move the market would make.

I told my Option Shoppers on August 2nd that Wells Fargo (Ticker: WFC) was rolling over and it was heading to $41.50, as that was the next support level on my pitchfork.

I recommended buying the Sep08 44 puts.

I paid $.93 and said I would like to sell these puts at $3.00.

Here is what WFC did:

It traded down to $41.50!

And here is the put quote on Friday’s close:

The high was $3.13.

Folks, the pitchforks work!

So, now that WFC has traded down to the support level at $41.50, we need to watch for it to trade away from that $41.50 level.

Once we see that move, we hop into calls and ride it back up to $45 or we can buy puts and watch the stock trade down to $39.80 and $38.25.

Keep your eye on this one.

Thanks for Reading … See You Next Tuesday,

Licia Leslie