Cheap Calls on Bitcoin, Cheap Puts on Wells Fargo

Charlie here.

Licia's picks this week are a tale of two setups you probably wouldn't pair together at first glance.

One's a momentum chart coiling up for a breakout, with cheap calls sitting there like they're on clearance.

The other is a big, boring bank that just reported earnings and is quietly breaking down right in front of everyone who's already made up their mind about it.

Both came out of her pitchfork work, which is how she separates the setups that are actually ready from the ones just pretending.

Licia's breakdown is below.


 

Hey Traders,

The stock I love this week is Bitcoin (BTUSD). It's bull flagging here and gearing up for its next leg higher:

Once it trades over $75,085, it's going to $77,583 and then $84,549.

Calls are super cheap in the iShares Bitcoin Trust (IBIT). I would go for next week's 43 calls.

BTC is the world's first and largest cryptocurrency by market cap.

It was launched in January 2009 by the pseudonymous Satoshi Nakamoto (whose identity is still unknown) and runs on blockchain, a public, immutable ledger that secures the network without needing banks or governments.

It's capped at 21 million coins, which is what gives it built-in scarcity and makes it so interesting as an inflation hedge.

Earnings Couldn't Save Wells Fargo

The stock I'm buying puts in this week is Wells Fargo (WFC), everyone's favorite bank to hate. It has released earnings and is breaking down below the 20-day moving average:

I like it down to $76.66.

Wells is one of the largest banks in the U.S. Its business spans consumer banking and lending, commercial banking, corporate and investment banking, and wealth management.

It's especially strong in retail banking and mortgages, where it's one of the biggest originators and servicers in the country.

Just in case you missed us, here is our replay all about the revolutionary way we are all going to trade options into the future. Check out and come join us at 2:00 p.m. ET today! Everyone is invited.

Trade Accordingly,

Licia Leslie


That's Licia's two this week. A crypto breakout where the options are practically free, and a bank that reported earnings and got thanked for it with a breakdown below the 20-day.

She reads charts for a living, and these are the kinds of setups her pitchforks flag before the crowd catches on.

The real question: what will the team pick on Monday?

Join the Ticker Highlight Show Premium before Monday at 10:30 a.m. ET to find out.

See you there,

Charles Delvalle

Managing Editor, Option Pit

Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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