Buy the Dip in This Energy Stock

FTI call options have been hot during the past two weeks of trading

Managing Editor
Aug 10, 2018 at 12:46 PM
facebook X logo linkedin

U.K.-based energy concern TechnipFMC (NYSE:FTI) is slightly higher in afternoon trading, last seen up 0.3% at $30.07. The stock has pulled back since its late-July post-earnings surge, moving just below its year-to-date breakeven mark. However, now may be an ideal time to buy the dip on the energy name.

FTI stock is now within one standard deviation of its 200-day moving average, after a lengthy stretch above this trendline. There have been three similar pullbacks for FTI in the past, after which the stock went on to average a one-month gain of 5.8%, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Further, the shares could find support atop a trendline that's connected higher lows since November.

FTI stock chart august 10

In the options arena, the energy stock's Schaeffer's put/call open interest ratio (SOIR) of 0.19 indicates that calls more than quintuple puts among options expiring in the next three months. Further, this SOIR ranks in the 13th percentile of its annual range, meaning short-term speculators have rarely been more call-heavy in the past year.

Digging deeper, it seems traders are expecting a short-term bounce for TechnipFMC stock. The August 32 call saw the largest increase in open interest during the past 10 sessions, with more than 14,000 contracts added during this time frame, and data from the major options exchanges suggests a heavy amount of buy-to-open activity. The August 32 call is now home to nearly 17,000 contracts outstanding -- peak open interest among all strikes.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI