MakeMoneyCoESTB2020

NOV: 1-2yr Covered Call Strategy

Long
NYSE:NOV   NOV Inc
Reasons for likely recovery:
Fundamental Analysis
- NOV suffered under major commerce COVID restrictions' impact on petro use.
- NOV is poised to recover with the opening of commerce. Petro sector is critical for both recovery and any developments in the ALT energy sectors.
- NOV supplies the equipment to the petro market, insulating it somewhat from the volatility of the commodity swings.

Sentimental Analysis
- NOV made a series of small acquisitions that will likely improve revenue.
- since NOV supplies equipment its major stock price rebound lags the recent run up in oil prices and will likely follow suit.
- NOV under-performance in recent earnings was already priced in and stock prices surged in-spite, a strong indicator of market confidence in future performance.

Technical Analysis
- NOV has recently tested its 200EMA, consolidated, and recovered ~21%;
- NOV just had a bullish crossover on the STC
- NOV also has been beating VWAP in its recent bullish trend
- NOV remains ~30% below its pre-COVID levels.

PLAN
Entry Price: $14-$15, average down to $13.5
TGT Sale Price: Conservative - $18, Moderate - $22, Final- Set trailing Stop
Stop Loss: $12
Max Position Size: 5% of portfolio

Note - NOV hosts weekly OPTIONS. Average in to 100 shares (+). Begin selling weekly CALLs @ 1 Standard Deviation above average purchase price, while collecting modest DIV . Try to sell after 365 for long terms capital gains but do not violate STOP.
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