Sell Michelin turbo calls | Photo credits: Manel / Creative Commons
As part of our section dedicated to derivatives, we have decided to settle the turbo calls recommended on Michelin (code: ZX3FB), although in losses of 40%. We went short this weekend on the fundamental level as part of our weekly.
The second half promises to be at risk for the tire manufacturer. The decrease in purchasing power is likely to weigh on sales, while 70% of turnover is made in the aftermarket. Moreover, market forecasts were revised downwards in July. Bibendum is a heavy consumer of energy and would risk being affected by possible restrictions on gas consumption, even though it has adapted its factories to run on fuel oil.
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