Nucor Stock has been in my Put Selling US Stock portfolio since 2010. Nucor stock symbol is NUE. Recently Nucor Stock made a series of 52 week new highs as investors bought the stock on the announcement by management that they were expecting better returns for the third-quarter earnings. Nucor management indicated that they were seeing an improvement in demand coupled with supply disruptions experienced by its competitors. They also mentioned that its raw materials segment would likely report weaker results than in the second quarter because of higher start-up costs at its new Louisiana iron plant which converts natural gas and iron ore pellets into direct reduced iron for scrap metal which is primarily used for steel products in electric arc furnaces. They are expecting third-quarter earnings of between 35 to 40 cents compared to 35 cents for the same quarter last year. Analysts, on average, are expecting 38 cents a share. These earnings are to be released around Oct 14.
New Highs in Nucor Stock
On that news Nucor Stock made new highs and I wrote at that time pointing out that Nucor Stock was overvalued and for those who love Put Selling like I do, it was better to wait for Nucor Stock to fall back. Since making those new highs though, Nucor Stock has pulled back and I am back Put Selling the stock this morning.
Nucor Stock New Highs Chart
The chart below shows the latest run higher in the stock. With new 52 week highs in a row, a number of investors had emailed me wondering about when to go back to Put Selling. I started Put Selling this morning. You can see in the chart the typical top in a 52 week high that is overstretched but also overbought. A very nice red candlestick with the stock closing at the low for the day marks the end of the present top.
Put Selling Strikes Sold
With the drop back to the Middle Bollinger Band this morning, I took advantage and sold 5 naked puts at the Oct 19 expiry $46 put strike for .33 cents. This starts my trades back into Nucor Stock.
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