Today’s tickers: INTC, WFC, TIVO, DDUP, VLO, CBS & XLI
WFC– We observed a few notable bearish plays on WFC this afternoon amid a share price decline of less than 1% to $24.18. The nearer-term July contract saw one trader initiating a ratio put spread. The transaction involved the purchase of 4,000 puts at the July 23 strike price for 1.72 apiece spread against the sale of 8,000 puts at the July 19 strike for 61 cents each. The net cost of the spread amounts to 50 cents and yields maximum potential profits of 3.50 in the event that shares decline to $19.00 by expiration. The investor breaks even at a share price of $22.50 or about 1.68 below the current price of the underlying. A long-term WFC-bear appears to have sold calls to fund the purchase of protective puts in the January 2011 contract. The trade involved 6,000 calls shed at the January 25 strike for a premium of 6.50 each against the purchase of 6,000 puts at the same strike at a cost of 7.65. The net cost of getting long the puts amounts to 1.15 and yields profits below the breakeven point located at $23.85 which is beneath the current price per share. Finally, general pessimism was evidenced by the put-to-call ratio of more than 2, indicating…