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The Best Options Trade for Wells Fargo (WFC) Earnings

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On Friday, October, 14th, Wells Fargo (WFC - Free Report) will release its third quarter earnings results before the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of F.

Dave will look at Wells Fargo’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Wells Fargo ahead of earnings.

Wells Fargo in Focus

Wells Fargo (WFC - Free Report) is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally.

Wells Fargo is expected to report earnings at $1.02 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings miss at $1.01 per share missing the Zack’s Consensus Estimate of $1.02 per share, and they have an average surprise of 0.50% over the last four quarters.

WELLS FARGO-NEW Price and EPS Surprise

WELLS FARGO-NEW Price and EPS Surprise | WELLS FARGO-NEW Quote

Wells Fargo is trading around $45 a share, and they are well off from their 52-week high of $56.34 per share.

Wells Fargo is a major player within the banking sector, and currently their sector is ranked in the top 42% according to the Zacks Industry Rank. Having said that, Wells Fargo has been front in center of a major scandal. Recently the Consumer Financial Protection Bureau fined the bank $190 million for opening millions of unauthorized accounts. Furthermore, the bank will probably face serious legal action moving forward, and their CEO had a poor showing on Capitol Hill.

David poked fun at the whole scenario a couple weeks back in his Trending Stocks series. You can watch the video below.

Bottom Line

How should investors play Wells Fargo ahead of their earnings report? For insights on the best options trades, make sure to join David’s Live Trader Service for future earnings announcements.

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