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This Is Our Next Triple-Digit Opportunity

Actions to Take:

  • Initiate an order to sell your Pioneer Natural Resource Company (PXD) position if shares trade down to $252.00 (on the downside) or up to $255.00 (on the upside).
  • Buy-to-open a TSLA December 15, 2023 $225/$220 Put Spread for 2.25 or less. Plan on exiting for a 100% profit – or if shares of TSLA trade up to $239.50.

I have a lot of ground to cover today so I’m going to get right down to business – the business of profits!

As I explained in Friday’s alert, I was likely going to want to sell our Pioneer Natural Resource Company (PXD) position if the stock trades up to $253.00 which is the agreed upon price for the Exxon Mobil Corporation (XOM) all stock acquisition.

Frankly, I’m not all that interested in receiving 2.3234 shares of XOM for every single PXD share we hold. I’d much rather bank a profit and use our capital for a new recommendation.

Shares of PXD traded as high as $256.55, well beyond the $253.00 acquisition price, so there’s an opportunity to get out of the position at even more than the stated acquisition price.

Action to take: Initiate an order to sell your Pioneer Natural Resource Company (PXD) position if shares trade down to $252.00 (on the downside) or up to $255.00 (on the upside).

Now, let’s move on to today’s newest triple-digit profit opportunity.

I’m defining today’s recommendation as a “speculative” trade, for one reason, and one reason only – it’s Tesla Inc. (TSLA).

But it’s not speculative in the least because of how (and why) we’re constructing this downside play.

It’s not speculative if one of the strikes we’re targeting is already at-the-money and we’re targeting a 100% profit.  It’s actually a smart risk/reward play on a stock that’s all over the place.

Here’s why we’re targeting TSLA today.

The company whiffed on earnings yesterday, reporting adjusted earnings per share (EPS) of $0.66 versus $0.74 expected. That’s a big whiff!

The company missed on revenue, reporting $23.4 billion, missing analysts’ estimates of $24.06 billion. Another whiff.

Where the company absolutely struck out was on operating margins which came in at 7.6%, down significantly from the year-ago quarter’s figure of 17.2%. Yikes, that’s a huge drop!

None of that is good – but what I found very intriguing was that Elon Musk said that before they go “full tilt” of building the company’s new factory in Mexico, the company is working to bring down (not up) the price of its cars.

If they bring down the prices of cars, while at the same time have fixed (an increasing) production costs, the margins are going to get pinched even further.

Does that make any sense?

No. it doesn’t!

Action to take: Buy-to-open a TSLA December 15, 2023 $225/$220 Put Spread for 2.25 or less. Plan on exiting for a 100% profit – or if shares of TSLA trade up to $239.50.

I spoke more about today’s TSLA trade, our PXD instructions, and my thoughts on rising rates in the U.S. Treasury market, in today’s Hyperdrive Live Event. Click here if you want to hear what I had to say.

Now let’s check in on our outstanding positions, profit targets, and protective stops. Today, we’re updating our instruction on the following two recommendations: Pioneer Natural Resource Company (PXD) and WFC December 15, 2023 $40/$37.5 Put Spread.

Stocks & ETFs:

  • ZIM Integrated Shipping Services Ltd. (ZIM): HOLD
  • Pioneer Natural Resource Company (PXD) position if shares trade down to $252.00 (on the downside) or up to $253.00 (on the upside).
  • Benson Hill, Inc. (BHIL): HOLD
  • Devon Energy Corporation (DVN): HOLD
  • Black Stone Minerals, L.P. (BSM): HOLD Plan on adding the second half of the recommendation at $13.00.
  • 3M Company (MMM): HOLD

Options:

  • SLG November 17, 2023 $25/$20 Put Spread: Plan on exiting the position at $4.00 or more.
  • CBRE December 15, 2023 $75/$70 Put Spread: Plan on exiting the position at $4.20 or more.
  • MET December 15, 2023 $50/$45 Put Spread: Plan on exiting the position at $4.31 or more.
  • BXP December 15, 2023 $55/$50 Put Spread: Plan on exiting the position at $4.76 or more.
  • WAL December 15, 2023 $35/$25 Put Spread: Plan on exiting the position at $9.38 or more.
  • BXP January 19, 2024 $65-$60 Put Spread: Plan on exiting the position at $3.60 or more.
  • FLR January 19, 2024 $35-$32.50 Put Spread: Plan on exiting the position at $1.70 or more.
  • MET January 19, 2024 $62.50-$60 Put Spread: Plan on exiting the position at $1.60 or more.
  • PACW January 19, 2024 $7-$6 Put Spread: Plan on exiting the position at $0.45 or more.
  • SLG January 19, 2024 $35-$30 Put Spread: Plan on exiting the position at $3.50 or more.
  • WAL January 19, 2024 $47.50-$45 Put Spread: Plan on exiting the position at $1.80 or more.
  • TBT January 19, 2024 $35/$30 Put Spread: Plan on exiting the position at $4.73 or more.
  • ROP November 17, 2023 $490/$500 Call Spread: Plan on exiting the position at $9.50 or more – or if shares of ROP trade down to $470.00.
  • WFC December 15, 2023 $40/$37.5 Put Spread: Plan on exiting the first half of the position at $1.39 or more.
  • TSLA December 15, 2023 $225/$220 Put Spread for 2.25 or less. Plan on exiting for a 100% profit – or if shares of TSLA trade up to $239.50.

Limit Orders:

  • Buy-to-open ITA Nov 17, 2023, $108/$109 Call Spread for $0.40 or less. Plan on exiting this trade for a 100% profit.
  • Buy-to-open ITA January 19, 2024, $109/$110 Call Spread for $0.35 or less. Plan on exiting this trade for a 125% profit.

 

Cheers,

Shah