Today, I'm focusing my attention on minerals used in modern technology and presenting a way to use options to play a lithium miner.
The strategy gives a lower-risk way to get somewhat long this beaten-up miner without going all-in, and generating some income in the process.
Lithium is used, as the name suggests, in lithium-ion batteries which are crucial for portable electronics, energy storage, and electric vehicles.
Combined with understandably elevated options premiums this could set as a spot to begin entering a partial position, with some options overlays.
Or, if the stock falls, would add to the long position at the short-put strike.
Persons:
Tesla, Elon Musk, Albemarle
Organizations:
Albemarle Corporation, Volkswagen, BMW, Mercedes, Hyundai, GM, Ford, Toyota, Kia, Renault, Nissan
Locations:
Charlotte , NC, U.S, Albemarle, ALB