In last week's edition of Trading Tools, financial titan Wells Fargo & Company (WFC) was examined, as it appeared on the Zacks Put/Call Ratio Greater than 1.0 filter. Utilizing the same screener this week in an effort to find stocks surrounded by heavy pessimism in the options arena, another equity caught my eye: discount retailer BJ's Wholesale Club, Inc. (BJ).

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and

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Tensions flared this Friday morning between Wells Fargo and Citigroup over the purchase of Wachovia Corp. In a surprise move, Wachovia agreed to be acquired by Wells Fargo in a $15.1 billion all-stock deal. Citigroup demanded that the deal be called off, insisting that negotiations with other entities was prohibited as part of the agreement it had reached with Wachovia on Monday. Under the Wells Fargo deal, Wachovia shareholders would receive the equivalent of 0.1991 shares of Wells Fargo stock for every share of Wachovia stock they own - that’s about seven dollars per share.

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