economy

January 15, 2026

This chemical stock could be signaling a bullish reversal. How to use options to play the bounce

LyondellBasell's share price is starting to perk up after a difficult 2025. A call spread risk reversal may be a way to play the rebound.

This chemical stock could be signaling a bullish reversal. How to use options to play the bounce

TL;DR

  • LyondellBasell stock (LYB) has declined approximately 55% since mid-May 2022.
  • The stock recently closed above its 150-day moving average for the first time in 15 months.
  • Street consensus forecasts revenue stabilization in FY2026 and significant earnings growth from FY2025.
  • The company's dividend yield is high, reflecting investor skepticism about its sustainability.
  • A call spread risk reversal strategy is suggested as a way to play a potential bounce, hedging against dividend sustainability concerns.

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