Nutrien ($NTR): They help make your food, now they help make you money!
Hi everyone, I have recently entered into a call position on Nutrien ($NTR) due to technicals and macro news. First, a little bit of background: "Nutrien Ltd. provides crop inputs and services. It offers potash, nitrogen, phosphate, and sulfate products; and financial solutions. The company also distributes crop nutrients, crop protection products, seeds, and merchandise products". Basically, Nutrien provides a lot of fertilizer needed for industrial scale farming. They are a sizeable company with a market cap of nearly 60 billion and they also pay close to a 2% dividend. The dividend is not why im in this stock however. Im in it mainly for the technical set up.
First of all, Nutrien has seen a drop as of recent. This is most likely a result of the massive run up it has been having since feb. The stock has now bounced on the 50 ema and 38.2 retracement from the run up. This leaves the stock on good grounds to resume its rally.
Now looking at the hourly chart, the stock is on the cusp of breaking through resistance (almost did today, but market dropped eod). It is also on the verge of filling a gap of nearly 2.5% which can happen in a days span. Combined with the fact that earnings are around the corner, Nutrien is poised to pop. One final thing to mention is, being a fertilizer company, they stand to benefit from the fertilizer shortage as im sure their pricing has increased. There is also higher demand as crop prices have increased and farming season is underway. That being said, I believe they will crush ER.
The June 17 option chain has $200mil or more of OI on the call side. There is 30k OI ($15mil) on the 105 strike alone. To me, this means that a lot of big money is just parked for a rally.
Positions: 06/17 105C (following the money on this one)