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Jim Strugger's Cemex Trade

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Jim Strugger spoke on Bloomberg Markets about a bullish options strategy in Cemex SAB de CV (ADR) (NYSE: CX).

He thinks a potential negative effect on Mexican stocks from presidential elections is already priced in and he believes the company has recently stabilized by divesting 1 billion of the U.S. assets. It's also on track to post an annual profit after six years of losing money.

Strugger believes a potential increase of interest rates by Mexican Central Bank this week is going to support Mexican peso and it could be a positive catalyst for the stock. Fiscal policy in the U.S. and infrastructure spending are going to be key topics on the 2016 Presidential debate on Monday night and they could have a significant impact on the company because it generates 23 percent of its revenue from the United States.

Strugger wants to purchase the January 9 calls for $0.37 to make a bullish bet in the name. The trade breaks even at $9.37 or 24.11 percent higher.

Posted-In: Bloomberg Markets Jim StruggerOptions Markets Media

 

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