B. Riley Cuts CLF Stock Price Target

CLF call buyers have targeted the October 10 strike in recent weeks

Oct 1, 2019 at 9:47 AM
facebook X logo linkedin

B. Riley FBR cut its Cleveland-Cliffs Inc (NYSE:CLF) price target to $13 from $16, with the analyst in coverage citing an "evolving macro and price environment" for the mining company, pointing specifically to a sharp decline in Atlantic pellet premium. Nevertheless, the firm maintained its "buy" rating on CLF, with the analyst saying the stock is attractive, and has the potential for "substantial upside."

Most analysts are bullish on CLF stock, with four of seven in coverage maintaining a "strong buy" rating, and not a single "sell" on the books. Plus, the average 12-month price target of $10.20 is a 41.3% premium to last night's close at $7.22.

It looks as if options traders share in this optimism. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CLF's 10-day call/put volume ratio of 17.38 ranks in the 100th annual percentile, meaning calls have been bought to open over puts at an accelerated clip.

The October 10 call, in particular, has been a popular target among call buyers in recent weeks, but given its out-of-the-money status, it's possible shorts are using the options to hedge against any upside risk. There are currently 99.2 million CLF shares sold short, which accounts for more than 37% of the stock's available float.

Looking at the charts, CLF hit its most recent high of $11.61 in mid-July, before spiraling down to an 18-month low of $6.64 on Sept. 3. The shares rebound off this low was rejected near $8.50 -- a 38.2% Fibonacci retracement of this sell-off -- which sent them on their next leg lower. Today, Cleveland-Cliffs stock is slightly higher, up 0.6% at $7.25.


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI