FCAU Sinks Despite Factory Shift

The automobile manufacturer is at a multi-year lows

Deputy Editor
Mar 27, 2020 at 10:33 AM
facebook twitter linkedin


While more preventative measures are put in place to tackle to coronavirus pandemic, Fiat Chrysler Automobiles NV (NYSE:FCAU) announced it was in the process of converting its first plant into a hub that will create face masks to be donated to first responders and healthcare workers, and will be assisting children and families affected through charity work. The automaker expects supply to come within the next few weeks. At last check, FCAU stock is down 5.5% at $7.23, sinking alongside its sector after Moody's Investment Service sharply cut its 2020 automobile outlook.

Fiat Chrysler stock has suffered tremendously since hitting its early November highs. The stock is currently facing a 50% year-to-date deficit, a pullback that has been guided by the stock’s resistant 10-day moving average.

Still, analysts are approaching Fiat Chrysler with some optimism. Of the six analysts in coverage, four rate it a “strong buy,” while the remaining two analysts sport a “hold” position. Meanwhile, the consensus 12-month price target of $18.50 is an enormous 115% premium to its current levels.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FCAU sports a 50-day put/call volume ratio of 1.70. This ratio ranks in the 98th percentile of its annual range, meaning long puts have been outpacing long calls at a much quicker-than-usual clip.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners