Buy Chemours Company (NYSE: CC) October $49 Calls
Buy to open the October 19, 2018 call on The Chemours Company (NYSE: CC) with a strike price of $49 at $2.50 or lower. Symbol (CC181019C49)
The Chemours Company (NYSE: CC) has been in the recommended portfolio since March 2018. My confidence in the company’s prospects remains strong despite my earlier July call recommendation not working out.
New subscribers or those not involved in the earlier call purchase should consider this a new trade suggestion for all subscribers.
Management recently noted a new channel of demand opening up for its environmentally sustainable Opteon refrigerant.
Although the company might see less demand from European auto manufacturers due to the passing of mandate deadlines, a new wave of demand is emerging from U.S. automakers and European commercial refrigerator customers.
Management specifically called out 20,000 European supermarkets that they expect to be using Opteon by 2020.
In addition, revenue and profits from its Titanium coatings chemical are skyrocketing. Revenue from this product line now makes up almost half of Chemours’ revenue and grew 26% last quarter. Higher volumes and pricing are driving profits up even faster for this segment.
Stock Talk
JL
Bought cc at $2.41. Thank you, Linda.
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-CR-
$2.35 @ IB
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Joseph Lipari
thanks Linda buy at 2.36 on ET
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Akano
CC—181019C49 bought at $ 2.41 at TC
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Ted
Filled at $2.45
Thanks Linda!
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Victor
Filled @ 2.40 on TASTY
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Phil L.
Bought CC Oct 49 at 2.35
Already have October 50 and August 47 ….was out of the July with a small profit previously but I bought in May when I started my subscription.at 2.10 and sold on 6/7 at 2.85 The buy was pure luck.
Thank you Linda
Linda McDonough
You’re hired!
Phil L.
Thank you, however, in reality you are doing the heavy lifting. It’s reading the tea leaves that leads to success.
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Rick
Bought the Oct $49 calls at $2.45 and sold the Jul $50 at $0.40, so net $2.05 to extend.
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Edward Getchell
Linda, when you have simultaneous buy and option recommendations riding on a stock like Chemours and Tapestry, and you change, say the option recommendation, I think it a good idea to also reinforce (or change) your recommendation for those people who have purchased and are holding the stock because a change in the option recommendation raises questions in the minds of stock holders, “Did I miss something”.
Respectfully,
Ed
Sydnee & Howard
I too would appreciate a recommendation for those of us who own the stock.
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Linda McDonough
Ed,
I did attempt to clarify in the alerts that I still like both stocks and still have them in the portfolio. I will be more emphatic going forward to avoid any confusion.
Best,
Linda
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NorMan
Hi! The Last is now 2.55. IMy order is at 2.50. s it best to wait or just walk away for a different trade? Do we have rule for when the price is too high for a call trade? (Supposed to be 2.5 or lower)
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Jeff L.
Buy to open filled @1.49
Fo
$2.49?
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Jeff L.
Sorry I meant buy to open call 2.49
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Carl
Bought the Oct.19, $49 Call on CC at 2.50
Thank You Linda
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Daniel Long
BTO CC Oct 19 C49 @ 2.53.
DL
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Fo
In the trade at $2.50
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Stanley
CC filled for 2.50 @ fidelity
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Todd Harrell
2.47 TOS
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Cyan
CC filled in for 2.50
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Isidro Fernandez
Hello, I’m new to the website service and for more that I tried to understand Options I really can’t get it.
How do I get to execute my option trades?
I understand the basics.
Linda McDonough
Hello Isidro,
Investing Daily has put together a terrific guide to learning about options and how to execute options trades. I suggest you read through this Introduction to Options Guide.
https://bash.investingdaily.com/res/downloadablePremiums/IDIntrotoOptions.pdf
If the link doesn’t work, it can be found under the Frequently Asked Questions tab, about halfway down.
Please let me know if you have other questions after reviewing this. The guide will give you a much clearer explanation that I can offer here.
Best,
Linda
Isidro Fernandez
Hello Linda, thanks for the link. In now ready to buy some call options.
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Jeffrey J
Filled @ $2.50, at TradeStation.
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Isidro Fernandez
CC filled at 2.45
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Mark F
CC Roll filled @ 2.00
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Ian
Good morning Linda, I added your service to my portfolio over the weekend and hope it is as profitable as advertised. Filled CC 49 call @ 2.40.
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Phil L.
Anyone have a clue why CC is cratering today ?
Asjad Shamim
No clue…. Though market is trying to recover.
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Michael D
I did a couple searches in my Schwab SSE account on the underly trying to find out for myself and nothing was posted under the stock or at briefing .com in the last 24 hours.
not sure.
good question.
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Michael B
Phil
I wonder the same thing . This stock is so oversold it’s not funny. I’m going to be patient and see what happens. If Linda is correct buying these call options at this price is a steal. I’m wondering what the short interest is in this stock.
Phil L.
Michael,
To answer your question there are 3.4 million shares sold short. An increase of 400K over the past month. It is 1.85% of the shares outstanding and 2.7 days to cover. Data was from shortsqueeze.com The volume is on the higher side today. 80% is owned by institutions. Maybe on of them is liquidating their position.
Phil L.
And now there are 4.1 million short….
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ETKTRIDE
CC – filled @ $2.00 DR (IB)
Stock is sure taking a beating this week!
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Linda McDonough
Hello all,
I’ve been digging to find out why the stock is so weak. The best I can find is that Chemours and Honeywell (HON) are now appealing to the Supreme Court for help in overturning a 2017 case that disallowed the EPA from banning HFCs, the chemicals that Chemours’ and Honeywell’s products replace. While this is a setback, substitute products have been selling in the US even without an outright ban. I am still working to quantify what if any, impact the lower court ruling has on their estimates. I have never seen an earnings model that ASSUMES a court ruling is reversed so my gut is that estimates are safe. I’ll post more information and analysis soon but wanted to give everyone a heads up on why the stock is so weak.
Best,
Linda
Phil L.
Thanks Linda
Phil
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Neelu Kavuri
Hi Linda,
I am new to PCA. I see that the option is now trading @ 1.3. I purchased the option @ 2.5.
Can we average down now.
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Asjad Shamim
HI Linda,
Any thoughts on CC given stock expiring in October and its keep tanking?
Was there any news?
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Stanley
Hi Linda,
I noticed CC is down another 2.66% to 43.72.
I purchased at 2.51, currently .83 which is down 70%.
This doesn’t include the loss on first trade.
CC would have to rise approx 30% to break even in 100 days
That seems like a stretch to me.
We can stay the course, re roll, or sell.
What is your opinion.
Thanks
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Ray
Nice move this morning. I closed out for a healthy profit.
Thank you Linda, for another excellent trade.
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Linda McDonough
Hello all,
The Chemours Company (NYSE: CC) reported a tremendous second quarter. Earnings were $1.71, versus the consensus of $1.59 and revenue was inline. Most importantly, the company raised guidance for its environmentally friendly Opteon refrigerant product to 30% for the year, which implies 40% plus growth in the second half of the year.
The quarter looked incredibly clean to me: expanding margins, robust cash flow, and subdued expense growth. In addition, it increased its dividend by 47% and initiated a second stock repurchase.
After reviewing the transcript, my best guess is that the stock was under pressure due to fears regarding competition and/or saturation in the auto market. Management did a solid job of allaying those fears. The stock rose 7% on the day and I expect it to move higher.
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Wallace Rodriguez
Hi
Chemors keeps going south. Any new guidance?
Linda McDonough
Wallace,
Please see my comments below.
best,
Linda
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Diamond Bob
Hi Linda, Ozark Bob here. We sat together at the Alexandra conference. I bought the CC call and have been watching CC tank. Are you still optimistic short and long term? They’ve had such good results that this slide doesn’t make sense to me. I just bought a lower call (44) position for January. Your thoughts on the company, please.
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Linda McDonough
Hi Bob,
Good to hear from you. I am flummoxed by the action in CC. I thought I had figured out that investors were worried about auto sales yet the stock has not recovered after reporting a terrific number and giving strong guidance.
I’ve rolled the options once and considering doing it again. There’s limited short interest in the name so I don’t think there’s any demon lurking. My guess is that a big holder is liquidating for some reason, maybe redemptions or some issue that is independent of the stock. Regardless, it’s frustrating.
Best,
Linda
Frank S.
Hi Linda,
When did you rolled this option? I couldn’t find any alert on it.
Stuart Housden
The alert at the top of this thread is the roll – the initial recommendation was in March. 😉
Frank S.
Thanks.
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Linda McDonough
I haven’t rolled this a second time. I was hoping the stock would have more life on the tariff relief related to auto manufacturers. You will see an Alert if I suggest that move.
Best,
Linda
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Linda McDonough
Man, we cannot catch a break with this stock. CC is down 7% today on an industry report that warns Chinese Tio2 producers are lowering prices due to slowing demand and too much capacity.
Tio2 is one of CC’s fastest growing and most profitable product lines. Only 30% of it is sold to Asia but certainly, investors are worried lower pricing will hit all producers. I am still researching the details, but note that the product sold by CC is of much higher quality than the Asian producers.
Even the market report notes:
“many companies are attempting to improve their product quality to become more competitive in the international market. Meanwhile, others are struggling to adapt to China’s tightening environmental regulations.”
And CC management recently reiterated that they do not see any pricing pressure in the category of Tio2 that they sell.
For the moment, I am holding the stock and the option, which are both way underwater but from the information that I have, the sell-off seems overdone.
Best,
Linda
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Wallace Rodriguez
Hi Linda
Any new guidance on CC? I’m 98% loss right now 31 days from expiration of Jan $80 call.
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Wallace Rodriguez
Sorry – I have Oct $49 call. And is well underwater
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Michael B
Linda
I can’t help but echo similar concerns re CC. Whatever money I made on your old recommendations is gone. Not a happy camper
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Wallace Rodriguez
Hi Linda
Is CC a lost cause? Is 97% loss almost 3 weeks before expiration – It has no time value. Any suggestions or just let it expire and take a deep breath?
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Linda McDonough
Wallace,
Please see the weekly update that I posted this morning. It includes my thoughts on the CC options.
Best,
Linda
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Vincent Chia
Hi Linda,
With five days to expiration and the call option is well under water, it will be a 100% loss. It is big disappointment that there is no proposed exist plan to roll or to cut loss. Confidence is shaken.
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