Weekend Trader Series
August 4, 2024
Open Positions Update
There are no portfolio updates this week.The following is this week's recommendation:
Ingersoll Rand (IR)Place a limit order to buy the Ingersoll Rand (IR) December 20, 2024 85-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, August 2, this option was offered at $9.50. IR closed at $87.42 on Friday, August 2.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Tuesday, September 3, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Ingersoll Rand (IR) beat profit and revenue expectations for the second quarter on Friday, and while the stock had a negative post-earnings reaction amid the broad-market selloff, it’s still sitting at prior May and June lows. The shares also remain above the 10-month moving average, which has been supportive on multiple occasions since 2021.
There’s potential support in place at the 85-strike using options that expire through October. It’s also worth noting that short interest is sitting at a two-year high and has tripled since November, as shares rallied to the recent high at the $100 century mark.
Our recommended December 85 call has a leverage ratio of 5.8, and will double on a 19% rise in the underlying security.
Most Recent Recommendations
The information contained herein is intended solely for the individual subscribers, is not intended for institutional investment organizations, and is not legal to be rebroadcast. Please click here for full disclaimer details.
Limitation on Schaeffer's Investment Research (SIR) liability: SIR liability, whether in contract, tort, negligence, or otherwise, shall be limited in the aggregate to direct and actual damages not to exceed the fees received by SIR from Subscriber. SIR will not be liable for consequential, incidental, punitive, special, exemplary or indirect damages resulting directly or indirectly from the use of or reliance upon any material provided by SIR. Without limitation, SIR shall not be responsible or liable for any loss or damages related to, either directly or indirectly, (1) any decline in market value or loss of any investment; (2) a subscriber's inability to use or any delay in accessing SIR website or any other source of material provided by SIR; (3) any absence of material on SIR website; (4) SIR failure to deliver or delay in delivering any material or (5) any kind of error in transmission of material. SIR and Subscriber acknowledge that, without limitation, the above-enumerated conditions cannot be the probable result of any breach of any agreement between SIR and Subscriber.