| The proceeds from those sales have been reinvested in the growth of Wells Fargo retail and commercial banking operations. The bank boasts more than 70 million customers and claims to be #1 in retail deposits in the U.S. In short, Wells Fargo appears to have survived its highly publicized scandal without losing its core business. The low-margin business lost to state and federal agencies as punishment for its misdeeds has been offset by higher-margin retail and commercial lending and deposit activity. Recession Fears That being the case, why is Wells Fargo now trading at its lowest share price since 2013? Some of that can be attributed to fallout from its botched attempts to repair its public image. But the simple fact of the matter is bank stocks are cheap due to historically low interest rates and fears of a recession. Since August 1, the SPDR S&P Bank ETF (NYSE: KBE) has fallen 10% due to escalating trade tensions with China and negative interest rates in Europe. All the major banks have taken a similarly sized hit this month including Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), and Citigroup (NYSE: C). Of course, if the U.S. goes into recession, all of the major banks are likely to suffer. But if it does not, most of them should recover strongly. And leading the charge could be a reinvigorated Wells Fargo under the direction of a new CEO. The most direct way to participate in such a scenario is to simply buy shares of Wells Fargo. At a recent price of $45, WFC sports a forward annual dividend yield of 4.6%. That's more than triple the 1.5% yield on the 10-year Treasury note. But there is a better way to earn a higher cash yield off of WFC with the possibility of buying it at even lower share price. Sell a "naked put" on it that expires on December 20 with a strike price of $42.50. A few days ago while WFC was trading at $45, that put could be sold for a premium of $1.60. That's your money to keep no matter what happens. On an annualized basis, that works out to a options premium yield of 11.3%. That premium is to compensate you for assuming the risk that WFC may drop below $42.50 over the next four months. If it does, you'll have to buy it at that price (and begin collecting its big dividend yield). This is the type of win-win scenario that professional investors look for. And it is the type of trade that my colleague, Amber Hestla, made successfully 49 times during the past year to generate consistently high income. Amber Hestla is chief investment strategist of the premium trading service, Income Trader. She's a financial expert but she's also a military veteran. Amber served with distinction in Operation Iraqi Freedom. While deployed overseas with military intelligence, she learned how to interpret disparate data to predict likely outcomes. Upon her return to civilian life, Amber honed this skill to find money-making opportunities. Want to learn Amber's money-making secrets? Click here for a presentation. | 
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