TopOptionAlert
Oct 27, 1:44 AM
$MP NOV20 39C · still actionable
Zone:
$37.21 to
$37.73
Invalidation: close under
$37.11
Objectives:
$39.50, then
$41.61
The math: up 5.4% to the first objective and 11.0% to the second, against 1.0% risk on the invalidation, better than 11 to 1 to the second.
Dear friend, picture a miner that spent the summer sliding from the mid 70s all the way down to the high 30s, and now sits just above the low it printed last week. MP Materials closed Monday at 37.47 dollars after dipping to 37.30 dollars during the day, which means buyers are still showing up near that floor even after a hard month. This swing simply bets that floor holds into the November 5 results, when the company gets to show whether its magnet business is turning that floor into a base. If price closes under that floor, the story is wrong and you step aside.
P.S. Analyst targets still sit far above this price, with Morgan Stanley at 66 dollars after its recent cut, so the street is watching the same floor from much higher up.
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