Buy Call VALE

March 15, 2023
Sell VALE June 17 Calls.

VALE, which is also getting hit along with its peers. Essentially it appears the market is now pricing in a recession (materials and airlines weak, along with countless others).

While we have partial profits in the bank on a portion of our VALE position, the balance will be sold for a loss.

To execute this trade you need to:
Sell to Close your VALE June 17 Calls

January 10, 2022
Sell a Third of Existing Position: Sell a Third of your VALE June 17 Calls for $2.15 or more.

Vale (VALE) is breaking out to a new high today, which is helping push our recently purchased June 17 calls to a potential profit of approximately 20%. Let’s stick to the program, lock in a profit, and then go for much greater gains with the balance of the position.

To execute this trade you need to:
Sell a Third of your VALE June 17 Calls

As is always the case when we take partial profits, we hope this initial sale is a mistake, and the stock and our calls trade much higher in the days/weeks to come.

December 27, 2022
Average Up Existing Position: Buy the Second half of the Vale (VALE) June 17 Calls for $1.90 or less.

Vale (VALE) and its iron ore/copper/commodity mining peers continue to strengthen, as well as attract bullish option activity. Because of this, today I am going to buy the second half of my VALE position, making it a full position.

To execute this trade you need to:

Buy to Open the Second Half of VALE June 17 Calls

As noted in the original buy/trade alert, this group can get hot, and cold, very quickly … so there is risk. That being said, the strength in the sector, as well as bullish option activity and cheap price of the option, is too good to pass up, so I will be adding further exposure to this trade.

December 1, 2022
Half Position: Buy the Vale (VALE) June 17 Calls (exp. 6/16/2023) for $2 or less.

The market shot higher yesterday following a speech by Federal Reserve Chairman Jerome Powell that many traders viewed as “less hawkish.” Hopefully, maybe, possibly, the market is on the verge of an end-of-year run … or, conversely, this will be yet another failed bear market rally. Regardless …

Vale (VALE) popped to my radar in the last several days as option activity has turned very bullish, as the stock approaches recent highs. Here are some of those trades:

Today – Buyer of 7,000 Vale (VALE) June 18 Calls for $1.40 – Stock at 16.40

Yesterday – Buyer of 10,000 Vale (VALE) January 17 Calls for $0.85 – Stock at 16.3

Tuesday – Buyer of 15,000 Vale (VALE) June 18 Calls for $1.30 – Stock at 16.

And while I like the way VALE stock looks, as well as this option activity, there is little doubt that commodity-related stocks like VALE can get red hot, and then ice cold, in the blink of an eye. For that reason, plus the general market uncertainty, today let’s start with a half position.

To execute this trade you need to:
Buy to Open Half of a Position in the VALE June 17 Calls

The most you can lose on this trade is the premium paid, or $200 per call purchased.

The risks I see in this trade are:
General market risk
Commodity risk (VALE is a player in iron ore/copper/gold/silver)

Finally, should the option activity in VALE stay strong, I would anticipate adding the second half of our position … but let’s first see how investors handle the strong market move from yesterday, and the Jobs Report tomorrow morning.