Weekend Trader Series
November 10, 2024
Open Positions Update
- The Toast (TOST) January 17, 2025, 25-strike call was closed after hitting its target profit of +100%. If you have not already done so, please close out of your TOST position at the earliest opportunity.
The following is this week's recommendation:
Iron Mountain (IRM)Place a limit order to buy the Iron Mountain (IRM) January 17, 2025 115-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, November 8, this option was offered at $8.40. IRM closed at $119.71 on Friday, November 8.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 Monday, December 9, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
This week, Iron Mountain (IRM) stock’s post-earnings drop had it pulling back to the $114 region, which provided resistance in August. Shares of the real estate investment trust (REIT) also tested support at the 80-day moving average after the event -- a move that has proved to be a buying opportunity over the past year.
With technical support in place, now looks like a good time to bet on IRM’s next move higher, and options look like a good way to go. Premium is reasonably priced at the moment, as Iron Mountain stock’s implied volatility (IV) is in line with its historical volatility (HV).
An unwinding of pessimistic sentiment could provide tailwinds. In the options market, put open interest (OI) outflanks call OI. Plus, though shorts have been in covering mode since the stock’s mid-July 18-month high, it would still take shorts more than trading five days to cover, at IRM’s average pace of trading.
Our recommended January 17, 2025 115-strike call has a leverage ratio of 9.4, and will double on a 10.1% 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.