I think LTHM offers tremendous long term upside here from a fundamental POV, as well as technical. I have a LEAPS position going, aiming to capture the upside in the chart. I suggest you keep some long term exposure to it via shares or calls (riskier, Jan 2024 calls should be fine). Miners will have a tough time ramping up lithium mining to meet EV makers demand, as more and more battery factories are being built. This has tremendous potential to boost lithium demand while supply remains capped. Much higher lithium prices will ensue until supply can increase (not likely, and there's no economical way to replace the current extraction methods yet).
Best of luck,
Ivan Labrie.
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I've personally delta hedged my calls, while I wait for this potential down turn to end: The daily trend is now bearish.
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Covered my hedge here. +0.96%
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Monthly support held, daily down trend expired today.
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Earnings out: missed rev, beat non GAAP EPS. Argentina coming online by end of 2022, then expanded by 2023. Nemaska mine in US will be operative by 2025, give or take. CEO says the business is recession resistant, to a certain extent. Healthy lithium market, inelastic supply overall, will boost prices over time, strong demand will not go anywhere. As a bonus they benefit from the 'inflation reduction act'. Hodling.
IMO, EV is not feasible in the near term. expensive, harmful to harvest from the earth and we still have the problem of energy source to charge EV's
IvanLabrie
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@Azzzz, well, tell that to govts pushing for it...battery factories are popping up left and right, the demand for battery materials will far surpass the supply of lithium miners can produce. It's a good bet in this regard, without as much risk from macro factors vs say owning EV makers. They face a lot more challenges.