TS Riding Momentum Off Last Week’s Highs


Tenaris SA (TS) is fresh off of an upgrade at Goldman Sachs, from “sell” to “neutral” and Guggenheim applied a price target of $55.00. The pipe manufacturing company based out of Luxembourg is trading $48.03 today, up 11.79% on the year. A lot of activity came across the tape last week and the stock gapped up Thursday before the holiday weekend after news of its winning a contract with Brazilian energy giant, Petrobras. Tenaris has been able to sustain last week’s gainsand is trending higher.
Currently, TS is trading above the cloud looks to increase its cushion. The stock reached its 52-week high overnight Thursday and will be looking to test that level again this week as it creeps higher after a slight selloff. On the daily chart, TS is in what looks to be the middle of a big move to the upside that began in mid-May and has seen almost $6.00 in gains. If the broader market trends continue, we can definitely look for TS to see some more upside. Let’s take a look at a trade:


The Trade

Buy Aug 50 Call for $0.95

Risk: $95 per 1 lot

Breakeven: $50.95



Delta Long

Gamma Long

Theta Short

Vega Long