Long

$LTHM: EV adoption + inelastic supply...

Updated

I think offers tremendous long term upside here from a fundamental POV, as well as technical. I have a LEAPS position going, aiming to capture the upside in the chart. I suggest you keep some long term exposure to it via shares or calls (riskier, Jan 2024 calls should be fine).
Miners will have a tough time ramping up lithium mining to meet EV makers demand, as more and more battery factories are being built. This has tremendous potential to boost lithium demand while supply remains capped. Much higher lithium prices will ensue until supply can increase (not likely, and there's no economical way to replace the current extraction methods yet).

Best of luck,

Ivan Labrie.

Note

I've personally delta hedged my calls, while I wait for this potential down turn to end:

The daily trend is now bearish.

Note

Covered my hedge here. +0.96%

Note

Monthly support held, daily down trend expired today.

Note

Earnings out: missed rev, beat non GAAP EPS. Argentina coming online by end of 2022, then expanded by 2023. Nemaska mine in US will be operative by 2025, give or take. CEO says the business is recession resistant, to a certain extent. Healthy lithium market, inelastic supply overall, will boost prices over time, strong demand will not go anywhere. As a bonus they benefit from the 'inflation reduction act'.
Hodling.

IvanLabrie

🔒Want to dive deeper? Check out my paid services below🔒

ivanlabrie.substack.com/

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.