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

Venator Materials VNTR, Betting on "Dogs"- Call Options

 Link to Venator Materials

Venator Materials (VNTR) is very interesting company, besides wide range of products they offer, their valuation is incredibly low.
Shrinking revenues and earning are not as bad as charts could make us believe or explain why this +$20 per share stock is trading now around $1.25.
If there are some underlying problems with this company, we don't  know that, but I would rather attribute oversold condition of VNTR to shrinking economy, lower demand for products and sluggish commodity prices.
Is VNTR worth buying at this stage? yes and no,  NO, because we don't know how long this economical slump will last and when commodity prices will start to move up to catch up with hidden inflation. YES, because right now VNTR is trading  much below 0.1 price to sales and could be subject to hostile takeover, buyback from (HUN) Huntsman Corporation at price much higher than Friday $1.25 closing....ahmm, like between $7- $15 a share ?. Of course, what I am writing here is pure speculation, but still, in my opinion VNTR stock belongs to $5-$7 range or even higher.
I don't intend to buy into Venator, because it is too risky, yet, I am thinking about following this stock with "Long shot" call option strategy, it costs only $5 per contract on June 19th $2.5 strike. If VNTR "decides" to move to the upside, I believe, the jump can be rather explosive, on high volume and that will propel call option prices skyward.

* below:  VNTR weekly chart since 2017, it's IPO

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

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

 charts by Bigcharts.com

Picture by MarketChameleon.com

First Successful Covered Call option trade

WZ options first successful trade:

April 03-2020 $210 strike at $4.70 C

C Trade, Slightly out of the money.

Short term covered call option for quick income.
04/03 expiration, sold when DIA was trading at $209.50  for $210 strike at $4.70 premium with expiration 2 days away.

If DIA closes below $210 on 04/03 this option will expire worthless, I will pocket $470 premium and retain stock for roll over.
If DIA closes above $210, I will keep $470 premium, option will get exercised at $210 . total profit on this transaction will be about 2.25% within 2 days........ to read more, please visit link below at:

April 3rd Covered Call at strike $210


Picture by MarketChameleon.com