Sell shares of Diebold Nixdorf (NYSE: DBD) and Ambarella (NSDQ: AMBA). Keep Diebold February Options Straddle open.

I am recommending the sale of Diebold Nixdorf (NYSE: DBD) shares ahead of Italy’s referendum due to the increased potential risk to companies doing business in the Eurozone if the “No” vote prevails. I still like the stock for the long term but in the short term the risks outweigh the benefits. The shares have clearly underperformed and could suffer if there is a massive selloff in Europe on Monday. I want to keep the DBD February options straddle in place as it would still let us participate in any significant move in the shares. 

Ambarella’s most recent earnings beat expectations but a big miss on its guidance seems to have exhausted investors’ patience. The drubbing suffered by the shares suggests that the stock is not likely to make progress in the intermediate term. So it’s time to sell this one too.

I’ll have more in Monday’s BTP weekly.