IR has potential support below at its 10-month moving average and 85-strike
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Ingersoll Rand Inc (NYSE:IR) beat profit and revenue expectations for the second quarter on Friday, and while the stock had a negative post-earnings reaction amid the broad-market selloff, it’s still sitting at prior May and June lows. The shares also remain above the 10-month moving average, which has been supportive on multiple occasions since 2021.
There’s potential support in place at the 85-strike using options that expire through October. It’s also worth noting that short interest is sitting at a two-year high and has tripled since November, as shares rallied to the recent high at the $100 century mark.
Our recommended call option has a leverage ratio of 5.8, and will double on a 19% rise in the underlying security.