CLF Forecast


Bullish Case: Recent insider buying and strong Q3 earnings demonstrate confidence in CLF's turnaround strategy. The Stelco acquisition could enhance market position and drive operational synergies, signaling potential for revenue growth.


Bearish Case: Failed acquisitions and high operational costs persist as significant risks. Market volatility and declining steel demand could pressure margins, leading to further downward price actions in the near term.


Potential Outcomes:

1) 30% probability of improved macro conditions boosting demand;

2) 25% chance of continued operational inefficiencies impacting profits;

3) 20% likelihood of successful integration with Stelco;

4) 15% chance of regulatory issues hindering operations;

5) 10% risk of industry disruption affecting pricing.


Trading Oracle: Leverage bullish debit spreads targeting short-term spikes, especially near earnings dates. Focus on $15-$16 call spreads for August and September, as they align with recent volatility peaks, ensuring a low-risk, high-reward structure amidst upcoming market turbulence.


July 25, 2024


Cleveland-Cliffs Forecast

CLF      Cleveland-Cliffs











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