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Wells Fargo sees heavy call selling

Chris McKhann (chris.mckhann@optionmonster.com)

Huge option trading in Wells Fargo on Friday was dominated by call selling at one strike.

optionMONSTER systems show that more than 111,000 January 44 calls traded, 10 times the open interest. Virtually all were sold, with the big blocks of 50,000 and 25,000 going for $0.50. They may have been sold against existing long stock positions as covered calls . (See our Education section)

A later big print of 22,333 was sold for $0.52 and appears to have been traded against 746,100 shares that were bought for $42.63973. In total the call sales give the right to sell 11 million shares.

WFC gained 2.4 percent on Friday to close at $42.71, the highest close of the week. The bank's shares have been finding resistance at $43 since coming off their highs of early August.

More than 143,000 WFC options changed hands in the session, compared to a daily average of 27,330 in the last month.

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