Close Menu
  • Home
  • AI
  • Art & Style
  • Economy
  • Entertainment
  • International
  • Market
  • Opinion
  • Politics
  • Sports
  • Trump
  • US
  • World
What's Hot

NVIDIA stock falls amid attention on Huang’s relationship with Chinese spy suspect

November 9, 2026

President Trump says his immigration policy is “too harsh” for voters | 2026 US midterm election news

November 9, 2026

6 people killed in far-right suspect in Krakow shooting, shocking Poland

November 8, 2026
Facebook X (Twitter) Instagram
Smart Breaking News on AI, Business, Politics & Global Trends | WhistleBuzz
Facebook X (Twitter) Instagram
  • Home
  • AI
  • Art & Style
  • Economy
  • Entertainment
  • International
  • Market
  • Opinion
  • Politics
  • Sports
  • Trump
  • US
  • World
Smart Breaking News on AI, Business, Politics & Global Trends | WhistleBuzz
Home » A drop in stock price can be an opportunity to get your money back and even make some profits. Here’s how to do it
World

A drop in stock price can be an opportunity to get your money back and even make some profits. Here’s how to do it

Editor-In-ChiefBy Editor-In-ChiefMay 9, 2026No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email Copy Link
Follow Us
Google News Flipboard
Share
Facebook Twitter LinkedIn Pinterest Email


If the stock you own goes down in value, you can use options trading to get your money back.

Case in point: Fluor Co.

The stock price has fallen 15% since the announcement of Q1 2026 results.

Net income improved to a healthy $160 million from losses in the prior-year and prior-year quarters. The market is reacting to the reduction in full-year EBITDA guidance due to revenue underachievement ($3.66 billion vs. consensus $3.89 billion) and increased mining division costs towards the lower end of previous guidance.

However, the bullish “data center” argument remains. CEO Jim Breuer highlighted the proliferation of new awards for gas fuels and nuclear power, the very backbone of AI infrastructure. For shareholders looking to recover from this morning’s $2.50 haircut, the 1×2 call ratio spread provides a highly efficient way to repair their position.

Recovery Play: 50/52.5 Call 1×2 Ratio for June Long Stocks

A 1×2 call ratio spread involves buying one call with a lower strike and selling two calls with a higher strike. Using a monthly expiration date of June:

Buy (1) June $50 Call Sell (2) June $52.50 Call Maximum Gain: $2.50 Maximum Loss: No premium spend, but stock can be void Skill Level: Intermediate

Net credits: Ideally run in small credits (e.g. $0.10-$0.25) depending on the post-earnings volatility level.

Why this works with FLR:

Lowering basis through credit: Receiving credit slightly lowers the effective cost basis of existing stock without requiring additional capital expenditures. “Sweet Spot” Acceleration: If FLR returns towards pre-earnings levels, this trade will reach its maximum profit of $52.50. Between $50 and $52.50, the long call quickly increases in value, while the two short calls decay or remain out of the money, accelerating the recovery. Monetization of IV after monetization: Even after an “IV crash”, the residual volatility risk premium (VRP) is typically higher for out-of-the-money (OTM) strikes. Selling two calls allows you to capture more overvalued premium than a standard vertical spread.

Risk management and outlook

The main risk of a 1×2 spread is a “naked” short call. If the data center situation goes parabolic and the FLR exceeds $55.00 (the approximate break-even point for the spread), you will effectively limit your profits or face the obligation to sell additional shares.

But for stocks that just lowered their guidance, a vertical moonshot is less likely than a gradual “recovery” as the market clears its $25.7 billion backlog. This strategy bets on a steady recovery to the $52.50 level, using the market’s own volatility to pay for the “insurance” of a pullback.

Make CNBC your preferred source on Google and never miss a moment from the most trusted names in business news.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Editor-In-Chief
  • Website

Related Posts

Asian chip stocks in South Korea and Taiwan rise despite Nvidia monitoring

November 8, 2026

China’s wholesale inflation rate hits the highest level in four years

November 8, 2026

Stock Market News for November 8, 2026

November 8, 2026
Add A Comment

Comments are closed.

News

President Trump says his immigration policy is “too harsh” for voters | 2026 US midterm election news

By Editor-In-ChiefNovember 9, 2026

Published November 9, 2026November 9, 2026President Trump, in his first television interview since his party…

Are you kidding or testing? Why President Trump recommended UFC’s Dana White as press secretary | Media News

November 8, 2026

Jeffries supports impeachment of Hegseth as Democrats vow to investigate Trump allies | Donald Trump News

November 8, 2026
Top Trending

Is Jensen Huang’s job in jeopardy? Jeffrey Sonnenfeld of Yale University estimates it’s “about 50-50.”

By Editor-In-ChiefNovember 8, 2026

Nvidia’s board of directors announced Sunday that it would launch an independent…

Nvidia to investigate CEO Jensen Huang’s ties to possible Chinese spy

By Editor-In-ChiefNovember 8, 2026

Nvidia’s board of directors announced on Sunday that it would launch an…

Megaspeed executives were recruited to spy on NVIDIA’s CEO, according to US intelligence memo

By Editor-In-ChiefNovember 7, 2026

A memo circulating earlier this year claimed that technology executive Alice Huang…

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Welcome to WhistleBuzz.com (“we,” “our,” or “us”). Your privacy is important to us. This Privacy Policy explains how we collect, use, disclose, and safeguard your information when you visit our website https://whistlebuzz.com/ (the “Site”). Please read this policy carefully to understand our views and practices regarding your personal data and how we will treat it.

Facebook X (Twitter) Instagram Pinterest YouTube

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Facebook X (Twitter) Instagram Pinterest
  • Home
  • Advertise With Us
  • Contact US
  • DMCA Policy
  • Privacy Policy
  • Terms & Conditions
  • About US
© 2026 whistlebuzz. Designed by whistlebuzz.

Type above and press Enter to search. Press Esc to cancel.