Setup in StellantisSTLAP in reversal zone.
If market is bullish on Monday, we could expect it to reach at least €14,80.
STLAP trade ideas
Little bull call spread on StellantisI believe we are in the end of an accumulation. We had bad news lately about this company and his CEO. I don't want to own the stock, specially in this part of the economic cycle. This is purely a speculative trade.
There is a divergence in the awesome oscillator marking a possible end of the bear trend and right after, a period of low volatility characteristic of accumulations as we can see in the multiple historical volatility oscillator below. A spring a few days ago confirmed there were strong buyers. Now we are against the trendline.
So, I believe it's cheap (from ~€25 went down to ~€12,50) and it should make a bullish move shortly.
Strategy: Bull call spread
Expiration: 17 JAN 2025 (45 days to expiration)
Legs = +2 calls 13 and -2 calls 14
Premium = 0.27 * 100 stocks * 2 q per leg = €54
Max gain= €146
Risk / Reward = 2.7
Commissions= €1.5 (only open)
Break-even = From 13.27 (lower call + premium)
Historical Volatility (45 days) = 35,85%
Implicit Volatility = ~31%
In English: If the underlying (the stock) arrives at 13.27 I start earning money. If it gets to 14 or if it surpasses this price, I get to the max reward. I can lose at the most €54 + commisions even if the stock goes to €1.
The blue lines in the chart represent Breakeven, Max reward price and Expiration so I can follow the underlying. Now it's time to follow the DOM for each option.
I hope this process of thought helps you in your trades, specially if you are now to options.
Ready to take off.I think NYSE:STLA is ready to take off. From May 2024, NYSE:STLA has break though the first channel which was oscillating from end of July. The second channel is from end of April. NYSE:STLA is close to break through it. And lastly the thirds channel which is from first of October.
It also reached its bottom at 11.73 ( lowest level from November 2020).
I think we will have a slow run.
Bullish on this one.
I set my sell limit at 11 euros.
Stellantis cornered: Will it be able to reinvent itself?Paris is at a critical point. Marine Le Pen and her party, Rassemblement National, are pushing for changes to the 2025 budget, threatening a motion of censure that could destabilize the government. Political instability has severely impacted French bonds, intensifying concerns about the stability of the eurozone.
In the midst of this crisis, Stellantis (Ticker AT: STLA.IT) is going through a complicated phase. Carlos Tavares, the company's CEO, resigned unexpectedly after a year marked by a 40% drop in the value of its shares, a profit warning and a cash burn of 10 billion euros, factors that have eroded market confidence.
Stellantis currently trades at 11.990 euros, well below the 27.345 euros recorded in March. This fall has placed it in a sideways range between €15.972 and €10.448. From a technical point of view, the RSI is at 30.20%, reflecting a significant oversold level. However, the technical picture is unfavorable: on the weekly chart, since July 29, the 50-day moving average has crossed the 100-day downwards, while the 200-day average is approaching a crossover with the 100-day, which would confirm a more pronounced downtrend. On the daily chart, this crossover has already materialized, reinforcing a bearish expansion.
At this juncture, John Elkann, chairman and major shareholder through EXOR (AMS:EXOR), will lead an interim committee until a new CEO is elected in 2025. The company's ability to get through this stage will depend on its ability to implement effective strategies and restore investor confidence.
Stellantis is facing a turning point, both technically and fundamentally. Will it succeed in reversing the trend and strengthening its position in the global market? The next strategic decisions will be key to determine its future.
Ion Jauregui - ActivTrades Analyst
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STELLANTIS LONGLOOK AT THE CHART TO UNDERSTAND THE BULLISH TRADE
Respect the instructions. It is important that each one determines their risk management
long position on STLAPMy strtegy is based on price action with the reading of certain indicators that I like whilerespecting all the values that define the stock maket
