Support in Place for Industrial Stock

There is plenty of short interest to unwind as well for Ingersoll Rand stock

Aug 9, 2024 at 10:47 AM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this IR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Ingersoll Rand Inc (NYSE:IR) beat profit and revenue expectations for the second quarter on Friday, and while the stock had a negative post-earnings reaction amid the broad-market selloff, it’s still sitting at prior May and June lows. The shares also remain above the 10-month moving average, which has been supportive on multiple occasions since 2021.

IR Aug9

There’s potential support in place at the 85-strike using options that expire through October. It’s also worth noting that short interest is sitting at a two-year high and has tripled since November, as shares rallied to the recent high at the $100 century mark.

Our recommended call option has a leverage ratio of 5.8, and will double on a 19% rise in the underlying security.

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