I just can’t help myself.
After researching Wells Fargo (Ticker: WFC), I just have to jump on the bandwagon against the big shots
Here was a very interesting headline that I encountered during my research …
Wells Fargo’s CEO Sharf’s pay drops nearly 12% in 2020
Of course, I had to read on to see just how much he’s making.
Get this … the poor guy had his pay taken down three million dollars from $23 million to $20 million.
AWWW … that is Very Sad.
Let’s all feel sorry for him together!
As it happens, this gentleman, Charles Scharf, was Jamie Dimon’s top lieutenant during the 2008 financial crisis.
Remember that’s when the banks were handing out free money to people who couldn’t afford to pay it back.
(Wait, that sounds familiar. Oh, yeah, student loans. Why can’t colleges, who have money shoveled to them straight from the government in the form of federal student aid, give it back? They are floating in cash.)
I digress. Back to the Wall Street bums!
The article goes on to tell us how Goldman Sachs Chief Executive David Solomon had his pay cut by 36%.
That’s $10 million, bringing his total compensation down to only $17.5 million.
The world weeps!
Now, you may say I’m being a little mean …
But guess why the Goldman Sachs executives had their salaries and bonuses reduced?
Goldman Sachs recently had to pay $5.1 billion in penalties to several countries related to the 1MDB Malaysian scandal.
If you’re unfamiliar, Goldman helped the sovereign wealth fund 1MDB raise money selling bonds. Two GS bankers proceeded to skim a little for themselves … to the tune of 2.7 billion dollars!
The case documents show that a total of $4.5 billion was stolen from the fund to purchase New York City condominiums, hotels, yachts, a jet … and it also funded the movie The Wolf of Wall Street.
Ha! Can’t make this stuff up!
Onto My WFC Trade Idea
Looking at the WFC stock chart above, I am seeing how it has traded lower from $35.10 the day before earnings on Jan. 14, to closing on its low Friday at $29.88.
I think WFC will trade down to that first support line at $28.50 and has a great possibility of trading down to the second yellow line, closing that gap at $26.50.
Also, the implied vol of 43.12 is in our favor for buying cheap options, trading lower than the stock’s historical volatility of 50.65
I like buying the WFC Feb19 29 puts straight out by themselves paying $.90. I am not spreading them off like I usually because there really aren’t any puts lower with any meat on them to sell.
I will take my loss on these if they trade down to $.55.
Still rooting for the little guy!!
Thanks for Reading … See You Next Tuesday!