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Wells Fargo (WFC) said today that it will cut its current 51-cent dividend after the Federal Reserve’s most recent round of stress tests set new limits on dividend payouts and share buybacks. The bank said it will announce the size of the cut on July 14 when it announces quarterly earnings. Analysts expect a cut to 20 cents a share, according to Bloomberg.

Shares of Wells Fargo were up 1.42% in the regular session to close at $25.70 but fell in after-hours trading by 0.78%. The shares are down 52% for 2020.

I own Put Options, a bet that shares will fall in price, on Wells Fargo in my Volatility Portfolio on my subscription sites and The options, added to that portfolio on April 6 have a strike price of $25 and an expiration of October 16, 2020. The price at purchase was $3.70. The close today was $2.69.

I own Wells Fargo Put Options in my personal portfolios.