Showing posts with label oversold. Show all posts
Showing posts with label oversold. Show all posts

Sunday, October 10, 2021

CX Cemex S.A.B. de C.V. ADR shares (NYS) Trading

 Cemex, in my opinion is oversold even in current market and should bounce before 10/28/2021 earnings report. My current average is $6.64 per share
 


 

Today, 10/12/2021 Tuesday was another positive day for CX stock....it closed at $6.85, after reaching intra day high of $6.91......

Today 10/14/2021 Thursday was another positive day for CX Cemex shares after it closed 27 cents up or 3.96% on low volume in overall very positive market, which was rallying for tomorrows option expiration date ?


 

Sunday, May 17, 2020

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

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