Call Traders Used This Mining Stock to Triple Their Money

Blowout quarterly earnings helped BTU surge

Digital Content Manager
Feb 18, 2022 at 11:34 AM
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Founder and CEO Bernie Schaeffer is on fire! You may have seen earlier this month the breakdown of his supremely successful Meta Platforms (FB) put option. In addition to that 391.4% profit, Bernie also recently nailed a 200% return on a coal mining call option, described in detail below! And it's not just Bernie. Schaeffer's Senior Market Strategist Chris Prybal recently scored a speedy 129% profit on a Coinbase (COIN) put. 

At Schaeffer's, we want to be as transparent as possible with our investing methodology and Expectational Analysis®. We highlight these winners so readers can review the trading drivers and potentially identify ongoing opportunities based on previous successes.

Subscribers to our Schaeffer's Weekend Player service managed to triple their money in just under one month with our Peabody Energy Corporation (NYSE:BTUApril 14, 2022, 10-strike call recommendation. Below, we will dive into our reasoning for turning bullish on the coal mining concern, and explore how BTU has performed since then. 

When we entered the position on Sunday, Jan. 23, Peabody Energy stock was looking to bounce off its 200-day moving average, after recently consolidating around this trendline. The oil and gas sectors were already major sources of upside for the market, and the equity boasted wide support between the $9 and $10 channels. In addition, BTU had 12-straight monthly closes above its longer-term 10-month moving average.

Later on Feb. 10, Peabody Energy stock stepped into the earnings confessional to announce blowout fourth-quarter earnings of $3.93 per share -- more than triple Wall Street's estimates of $1.15 per share -- as well as a revenue beat of 1.26 billion, thanks to higher demand for fuel and steeper prices. The strong results caught the attention of analysts, with both Benchmark and BMO raising their price targets on BTU to $19 and $18, respectively.

At the time of our recommendation, Peabody Energy stock closed at $10.75. BTU then proceeded to rally above the $18 mark -- its highest trading level since October --  with support from the 10-day moving average guiding shares higher. This breakout allowed subscribers to lock in a 200% profit on the BTU call in a little under one month after our initial recommendation. 

BTU 10 200 Day

 

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