Add X Calls

One Final Upside Play

By Bryan Bottarelli
Tuesday, November 04, 2008 3:28 PM EST
Tue, 4 Nov 2008 20:28:00 GMT

PLAY: Buy the X November 40 Calls (X KH) at or under $3.80, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $5.70.

Dear Bottarelli Research Member,

As one final play of the day, I’d like to add an upside call play on U.S. Steel (X – NYSE). As you can see from the chart below, X has put in a rather “soft” recovery, which means that the shares have yet to rally as aggressively as other commodity-based plays (like gold stocks or heavy machinery stocks, for example).

X

Therefore, I think we have an under-valued opportunity to maintain our downside bias, represented with VZ puts and DXD calls, while still preparing ourselves for a continued upside push using cheap X calls. Having said that, let’s add X calls now!

PLAY: Buy the X November 40 Calls (X KH) at or under $3.80, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $5.70.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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