SUBSEA - sell overvalued cash position
Updated
Subsea 7 has a big short position by various high-end funds in the SSR registry with the financial authorities of Norway. Technicals look promising having finished a big w-formation while hitting the top in its current channel. Short term double top, with a break of trend seem to chart the course for 100NOK target where first solid resistance come into play. The company has a big cash position which seems to have been a safe bet during times of crises but it's highly likely it has provided a pile in of sector exposures which like will head for a reverse given all the other goodies in the sector now having cleaned up and re-shaped their stock and balance sheets. Short-term put options look cheap (107,50 strikes).
Trade closed: target reached
Hit a low of 100NOK today before bounce back but time to get out ;) It has touched the low of the channel which was the aim of the exercise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.