Cleveland-Cliffs Tops Earning!

Cleveland-Cliffs Inc (NYSE: CLF)  Option Calls Already Up 130% - And Still Climbing!

by Ian Harvey

April 21, 2018




Cleveland-Cliffs Inc (NYSE: CLF)

Here is an update of Cleveland-Cliffs’ winning options call trade after reporting earnings. This options trade was recommended as a consideration in the article Earnings Predictions for the Week Beginning April 16, 2018”; which produced excellent potential profits of 130% -- and still climbing -- within a short period of executing the trade!


The Trade to Consider……

…….from ““Earnings Predictions for the Week Beginning April 16, 2018.”

The Details……..

Cleveland-Cliffs Inc (NYSE: CLF), formerly Cliffs Natural Resources, is a Cleveland, Ohio, business firm that specializes in the mining and beneficiation of iron ore, and will report earnings before the market opens. The consensus estimate is for a loss of $0.19 per share on revenue of $217.43 million. The Earnings Whisper number is ($0.17) per share.

Overall earnings estimates have been revised higher since the company's last earnings release. The current year has seen three estimates go higher in the past sixty days compared to none lower, while the next year estimate has seen three upward and one downward revision in the same time period.

Analysts have also increased their ratings and price targets…..

  • Goldman rated the Cleveland-Cliffs Inc.’s stock as a Neutral in a research note published on Tuesday, March 20th, 2018 and posted an $8 price target on the common stock of Cleveland-Cliffs Inc.
  • B. Riley FBR, Inc. gave the stock a Buy rating, while setting a price target at $12 in a research note from Friday, March 2nd, 2018.
  • Credit Suisse rated the stock as an Outperform in a research note dated Wednesday, February 7th, 2018.

The company's finances and business strategy look better than they have in years, and there are some modest tailwinds that could help boost the business.

Cleveland-Cliffs has gone on the offensive by acquiring land for potential new mines as well as taking larger equity stakes in its existing mines.

Cleveland-Cliffs is about to break ground on a transformative project: its Hot Briquetted Iron (HBI) facility in Toledo, Ohio. This facility will produce a higher-quality feedstock to use in electric arc furnaces rather than the conventional blast furnaces that have been its customers for more than a century.

The Trade……..

** OPTION TRADE TO CONSIDER: Buy the CLF MAY 18 2018 7.000 CALL at approximately $0.50.

The Result………

Shares of Cleveland-Cliffs gained more than 7.5% after the iron-ore producer reported its first-quarter financial results.

Cleveland-Cliffs’ adjusted loss came in at 8 cents per share, which was narrower than the Consensus Estimate of a loss of 21 cents.

Cleveland-Cliffs posted first-quarter consolidated revenues of $239 million, down 48.3% year over year. However, the figure beat the Consensus Estimate of $197.1 million.

Future Outlook……

For 2018, Cleveland-Cliffs projects sales and production volume for U.S. Iron Ore unit to be 20.5 million long tons and 20 million tons, respectively.

The company maintained that it anticipates full-year selling, general and administrative expenses to be around $115 million, of which roughly $20 million is non-cash.

Cleveland-Cliffs expect to spend $225 million for the Toledo HBI Project this year, which was reduced by $25 million due to further development and refined timing of the project spending plan.

The company has maintained sustaining capital expectation of $85 million in 2018 and Northshore Mine upgrade spending expectation of $50 million.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 130% was to be made within a couple of days of executing the trade.

Entering the option trade at a price of $0.50; reaching as high as $1.15 (before closing at $0.90); one options contract would provide a profit of $65.00.



Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.

As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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