About 10 days ago I entered into a trade on Wells Fargo, it is one of the stock that has been beaten up, and has just been in the dumps. I do mention that it is there for a reason, its core business has stunk. But, the stock looked to be rebounding, so I got in with some calls. I bought some 18 Sep 20 calls at strikes 25 and 27.5. WFC started up, and then went down where I got killed on my options, but I rolled out too 16 oct 20 and bought some more there also 25 and 27.5 strikes. As it kept going down I would buy one more every day. I now have 10 options and am only down 476. Yesterday was a huge day for me. As I keep averaging down, I need less and less of a move to make money. Here is what the current chart looks like.
My target is 32 but could go higher. 4k to 10k is my target profit, and would be great but we will have to see. Hoping to get a rotation out of the techs into commodities and banks.
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