Opening a new position in Venator Materials (VNTR).
music selection: “Turn The Beat Around” — Vicki Sue Robinson
weigh-in: 201.0 (3.6)
Venator Materials (VNTR) was spun off from Huntsman in August. Huntsman retained 80% ownership but then began offloading shares in the public market. Shares plummeted. VNTR was also hit with a fire that shut down a key plant for months hurting shares further. Today, shares have begun to recover.
VNTR is the world’s third largest producer of Titanium Dioxide. This is a critical component in paints, dyes, and an additive to plastics, fiber products, and more. Chinese production has been shut down (perhaps permanently) due to environmental violations that led to hefty fines and imprisonment of executives. VNTR should see strong pricing going forward.
I sold VNTR180518P00017500 for 85 cents a share. The trade will be in force for 40 days and yields an expected 44.32% while enjoying 6.98% downside protection. I sold 9 contracts picking up 765 in income on 15,750 in capital at risk. I expect to do well in this position and think I have something that is well differentiated from my normal fare.
Devour your prey raptors!