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Buying Opportunity in Sinopec (SNP)

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Buying Opportunity in Sinopec

The two-day drop in equities from China has provided a buying opportunity in Sinopec (SNP). Sinopec is China's largest refiner and recently saw a sharp spike to $81.10 on its inclusion into the Hang Seng Index. This was on top of an already positive trend. The two-day sell in Chinese equities knocked Sinopec back to strong support at $74. I would be a strong buyer here on this weakness. There are no LEAPS so I would use the July $80 calls SNP-GP currently $5.40.

Company description:

China Petroleum & Chemical Corporation (Sinopec Corp.) is an integrated energy and chemical company with upstream, midstream and downstream operations. The Company and its subsidiaries operate mainly in the People's Republic of China. The principal operations of Sinopec Corp. and its subsidiaries include exploring for and developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products, producing refined oil products and trading, transporting, distributing and marketing refined oil products, and producing, distributing and trading petrochemical products. Sinopec Corp. has five operating segments: exploration and production, refining, marketing and distribution, chemicals, and corporate and others.  

Buy July $80 Call SNP-GP (no stop)

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