Ooops!.... the Market Did it Again in Civeo

Apologies to Britney Spears fans, but the market did it again. Last time it was in Seadrill. Today it was in Ceveo. Both companies crushed after they suspended their dividend.

I shared how we attacked Seadrill here last month: How a Stock Can Trade when their Dividend is Cut.

I shot a video explaining the trade below:

We had a similar trade today in Civeo. Before the open they announced a dividend cut and worse:

And then $CVEO traded down all intraday at its Low of Day. Ouch!

There will be more companies, particularly in the oil and gas space as oil prices plunge, eliminate their dividend. This is how such stocks may trade.

Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook. He welcomes your trading questions at [email protected].