4 Trade Ideas Wells Fargo: Bonus Idea

  • Posted by on October 12th, 2026 at 7:15 am

Here is your Bonus Idea with links to the full Top Ten:

Wells Fargo, $WFC, comes into the week rounding up out of a pullback. It is also back to the 38.2% retracement of the last leg higher after pulling back to a 61.8% retracement and finding support. The RSI is rising at the midline while the MACD is negative but crossed up.  There is resistance at 83.75 and 86.50 then 88.25 and 90 before 94.50 and 96.50. Support is at 79.50 and 77.50. Short interest is low under 1%. The stock pays a dividend with an annual yield of 2.39% and has treated ex dividend since August 7th.

The company is expected to report earnings the morning of October 13th. The October options chain show’s largest open interest at the 80 put then 85 and 77. On the call side it is largest at 89 then 85. In the November chain open interest builds from the 85 put to a peak at 75. On the call side it is strong and spread from 87.50 to 100. Finally, in the December chain, open interest is massive at the 80 put as well as the 100 call.

Wells Fargo, Ticker: $WFC

Trade Idea 1: Buy the stock on a move over 84 with a stop at 79.

Trade Idea 2: Buy the stock on a move over 84 and add an October 83/79 Put Spread ($1.33) while selling the November 90 Call (89 cents).

Trade Idea 3: Buy the October/November 90 Call Calendar (80 cents) while selling the October 79 Put (40 cents).

Trade Idea 4: Buy the December 80/87.50/100 Call Spread Risk Reversal (16 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday, which heading into the start of earnings season saw equity markets prepped for more upside with seasonal sentiment now headed into an historically strong period in the election cycle.

Elsewhere, look for Gold to continue a pause in the short term move lower with Crude Oil pausing in the short term move higher. The US Dollar Index looks to continue to work to push through the top of the zone on the verge of an uptrend while US Treasuries hold at 24 year high yields and all-time lows in price for the Treasury Bond ETF. The Shanghai Composite looks set to continue in consolidation after the holidays while Emerging Markets continue to show risk to the uptrend.

The Volatility Index looks to continue low in the normal zone, near the lows of the year keeping a tailwind behind equities. The charts of the SPY and the QQQ are looking stronger after breaking their flags over support on the shorter timeframe, while the IWM is finding some footing in the short term downtrend. The SPY and QQQ continue to look strong on the longer timeframe with both the SPY and QQQ making new highs while the IWM continues to show some signs of managing the risk to the 19 month uptrend. Use this information as you prepare for the coming week and trad’em well.