Home on the Range

Shares of YPF SA YPF are trading lower on the session by 0.20%, at $46.03. They gapped higher this morning, touching an intra-day high of $46.60, before pulling back and going negative. This is notable given the fact that shares of YPF are trading at the tip-top of its four-month trading range. This range has respected almost down to the penny during this time period with shares bottoming ~$40.57 and topping out ~$46.60. While shares seem like an easy short right here, the only fly in the ointment is that the 20-day and 50-day moving averages are now upward-sloping. In the previous two tests of the range they were both sharply downward-sloping. This could, at least, provide support to shares before the bottom of the range if not completely back short-sellers away from the name. YPF also carries a hefty dividend yield, currently at 6.91%, which could lend some support to shares as large money managers swap beta names for those with income support. Should you so choose to play the range and get negative here, you could buy the August $45/45 risk reversal for a net credit of $0.95-1.05. This is an effective short share position. YPF SA is an Argentinean integrated oil and gas company. Its business is structured in six activities: Exploration and Production, operating hydrocarbons exploration and production sites in the Neuquina, Cuyana, San Jorge Gulf, Austral and Nordeste basins. Refining and Logistics, controlling the refineries of La Plata, Lujan de Cuyo and Plaza Huincul, located in the provinces of Buenos Aires, Mendoza and Neuquen respectively, as well as it holds interests in the Refinor industrial plant in Salta. Marketing, offering a range of automotive, aeronautics, naval, farming and industrial fuels. Chemicals, manufacturing a variety of industrial products. Lubricants, dedicated to the development, production, distribution and sale lubricants, asphalts and derivates.YPF Gas, comprising the retail distribution of liquefied petroleum gas