Wells Fargo and Company (WFC)

[Porgie Tirebiter]

WFC has a lot of intrinsic value below $45. The "bad news" created an excessive amount of Implied Volatility in the puts. Selling that I.V. was like picking money up off the floor. But I.V. in WFC is sort of fading now.

That chunk of money I had in play with WFC is now in the put side of a Nov. 4 (ahead of earnings) strangle in AIG for a net I.V. of approximately 28% versus only about 20% currently being offered in WFC puts. Gotta sell the volatility.

By the way, AIG was another thoroughly hated stock at the time I got into it.