Earnings Option Trade Idea (CLF)

I think this stock could see a nice rally after the release of its earnings report tonight.  For one, this is a stock that has a strong negative sentiment.  In other words, it's a stock a lot of traders think will fall significantly from current levels.  I have to admit that I enjoy the contrarian trade, and this is one of those instances in which taking the contrarian position may pan out. Generally, when a stock has too many playing on one side of the trade more often than not it will go the other way.  That's what I think will happen with this stock.

 

clf

 

Here's the chain heading into the earnings report tonight:

 

I like the $24 calls at $.60

I also like the $24.50 calls at $.45

 

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Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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