Showing posts with label call. Show all posts

Saturday, July 4, 2020

BTU Peabody Energy Corp.

Coal mining,- BTU,Peabody Energy Corp.
Anyway you look at it, it's very unattractive company.
First of all, coal as source of power is on it's way out because of high pollution generation.
Second, price of coal is close to 10 year low.
Yet, about 35 % of power plants in US run on coal and government wont let this industry disappear overnight.
There is not much hope for coal producers and traders in long run, but short term call option trade could be rewarding .... IMO
*I am thinking, the hot summer could cause higher demand for energy and force energy producers to restart coal plants and that could put upward pressure on coal prices....Higher coal prices could benefit coal producers like Peabody Energy BTU, chart also looks promising with oversold signs.
-I am long on BTU calls with expiration July 17th, let's see what happens in next 2 weeks....

*Price of coal in last 10 years

Sunday, May 24, 2020

Sasol SSL Call Options June

Sasol SSL Website

Seems like Sasol SSL chart became very compressed, also daily volume has been going on for last 12 days below 5 million shares a day, even on a days when stock lost more than 12% and went below $4.00 a share.
I think, SSL will start to move up pretty soon.
I am long another 10 contracts on June 19th @$7.50 at $10 per contract for total $100.

Sunday, May 17, 2020

Upwork UPWK Company I like, Call Options

Upwork's Website

First time in a while I found company with great growth potential and fair valuation. Probably I wouldn't notice UPWK as a stock worth interest, if not for high volume day and substantial jump in price, because, usually I don't look for companies with valuations over 1 P/S. So I checked fundamentals, and I realized UPWK has market cap of less than 1.5 billion which is very unusual in technology sector, it doesn't make any profit, has revenue growth +20%, that's still nothing special to get excited about, until you read some more to find that Upwork is a leader in the field of remote hiring, it has been around since 1999, much longer than any competitor and has new CEO (Hayden Brown) in place with vision to execute growth at higher rate, possibly at +50% pace.
So, the very next day I bought 2 call contracts with expiration June 19th and strike $12.5 at average price $1.55 per contract. Now, let's hope that Upwork continues on it's uptrend to make me some money :)

Upwork's weekly charts since it's IPO in 2018

Upwork Inc UPWK CEO Hayden Brown on Q4 2019 Results.... video.

Sunday, May 10, 2020

ADM is ready to bounce up

ADM - Archer Daniels Midland Co. is one of world's major traders in agricultural commodities. It's a stable company with good valuation and solid dividends not like some tech high flyers with outrageous P/S, propelled to the upside mostly by hype, short squeezes and institutional buying.

Also, what I like about AMD it's high liquidity of options.

On 05/07/2020, Thursday, I went long on May 22nd $36.5 strike call options with average price $40 per contract after I realized that this stock short term oversold below $35 and is ready to bounce to the upside and hopefully start it's bull run toward ex-dividend date which is on 5/19/2020 .

My risk is pretty low and limited, even if I will be wrong with my prediction, but if I am right, reward could be substantial in range of 100-300 % or even more, if ADM "decides" to go on "rocket ride" for some reason, like interest from institutional buyers ...?

Screen shot from bigcharts.com

Wednesday, May 6, 2020

TAP Stock looks oversold

Looks like TAP (Molson Coors Beverage Co Class B) is ready to form the bottom and bounce back. If you look up the whole sector of beverages stocks, they show similar characteristics, including BUD and KO.

I decided to go with TAP because it has better value and greater upside potential.

As of today I am long on Call option May 22 with strike at $39.5 for 0.58 cents per contract.

picture by bigcharts.com

picture by marketchameleon.com

Friday, April 24, 2020

AIG Call Option $25 Strike May15

AIG Call Option to buy at $25 Strike with Expiration May 15th, for total cost $95.

Reasons for buying this Call are coming earnings on May 8th , tight trading range, good technical base, stock is oversold, gap around $30, possible recent buyback which could affect earnings on plus.

Cons: overall market looks bearish, current Covid 19 lock down will affect rest of the year with shrinking revenues and earnings in multiple sectors,.... but this bearish sentiment could also mean high short interest in the market, which could prevent stocks to go south any time soon.

Neutral observations: High institutional ownership at 93.4 %, Low short interest at 1.64 %

This transaction was Open on Friday 4/24/2020