This week’s Momentum Trader Alert pick is an energy stock that ranks as the #3 holding of money master Carl Icahn.
Several other large hedge funds recently have increased their holdings in CVI, including legendary trend follower Campbell & Co. Headquartered in Sugar Land, Texas, CVR Energy Inc. (CVI), through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States.
The stock has been on a tear and is up 19.62% just over the past month.
CVR Energy Inc. (CVI) vs. the S&P 500 over the past three months.
Momentum Trader Analysis
Buy CVR Energy Inc. (CVI) at market today and place your stop at $29.25.
If you want to play the options, I recommend the CVI March 2018 $35 calls (CVI180316C00035000), which last traded at $2.87 and expire on March 16.
Sell your remaining TXN January $92.50 calls, which last traded at $9.08 and expire on Jan. 19, for a 101.78% gain.
Sell half of your WWE April $30 calls, which last traded at $3.90 and expire on April 20, for a 69.57% gain.
P.S. This is the final recommendation of the year for Momentum Trader Alert. I will be taking a break next week along with my colleagues at Eagle Financial Publications.
Nicholas A. Vardy