TechnipFMC is the largest provider of integrated deep-water offshore oil and gas development solutions, offering the full spectrum of subsea equipment and subsea engineering and construction services. Additionally, the company provides various oil and gas onshore engineering and construction services, with a long-standing expertise in delivering liquefied natural gas projects.
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I went in with an oversized position that I plan to add to in the coming days. I actually used FTI1 (adjusted calls that have 100 shares FTI, 20 shares TE as the deliverable) Here's why.
-Selling to front run FTI dropping out of the S&P500 is done.
-Forced index fund selling after FTI dropped out of the S&P is done.
-Oil service industry is super bullish now but FTI didn't rally because of the first 2 points.
-TE is extremely undervalued (it made up 90% of the pre-tax income in prior quarters)
-TE has an island reversal and there is heavy accumulation at the Europe close everyday since the spinoff.
-FTI1 adjusted calls are underpriced. I picked up 100 $12 march call contracts for 5 cents today. The underlying value is $8.42 for the FTI shares and $2.82 for TE for a total of $11.24. These are only 7% from the money and being given away. I will keep taking them as well as others that are in the money and being sold for less than the underlying!
- See above. This is going to lead to a gamma squeeze if someone with a large bankroll (or WSB) picks up on this.
Pablo_Fiasco
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i like the idea. was has it been trending lower?
NxjaUNHaCucnyxaB
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@jele_31, Forced selling. When it spun off TE it dropped out of the S&P 500. See my other comment. In my opinion, right now is a good chance to have a trade that makes your whole year.
-Selling to front run FTI dropping out of the S&P500 is done.
-Forced index fund selling after FTI dropped out of the S&P is done.
-Oil service industry is super bullish now but FTI didn't rally because of the first 2 points.
-TE is extremely undervalued (it made up 90% of the pre-tax income in prior quarters)
-TE has an island reversal and there is heavy accumulation at the Europe close everyday since the spinoff.
-FTI1 adjusted calls are underpriced. I picked up 100 $12 march call contracts for 5 cents today. The underlying value is $8.42 for the FTI shares and $2.82 for TE for a total of $11.24. These are only 7% from the money and being given away. I will keep taking them as well as others that are in the money and being sold for less than the underlying!
- See above. This is going to lead to a gamma squeeze if someone with a large bankroll (or WSB) picks up on this.