$X Marks The Spot

A few weeks ago I was busy highlighting how its not Just Options at optionmillionaires.com .  We do trade, analyze, and love options here, but we also know a good long when we see one.  Usually we are buying short term calls on that stock, and with any luck those options are sold later on for a profit.  Which brings me to $X - U.S. Steel.

My chart from earlier this year in the $27's, the stock is now over $44.

Options are high risk/ high reward, but as I've stated before, we aren't just stock options.

Last Spring I was watching in eager anticipation as U.S. Steel began trading out from under the $20 depths.  This formerly $150+ stock, just prior to the financial crisis, was back to the crash lows and looking rather weak.  This is a stock investors love to love and love to hate.   As it approached long term resistance I knew the odds for a sharp rally were great.  I've watched and traded this stock through its love and hatefests.

It was then I penned this post.

Just days prior I posted this on Stocktwits, the foremost site for sharing trading ideas, charts, and my radical thoughts.

The break of long term resistance proved to be a catapult for the stock.  It has vaulted over $44 a share, and with continued momentum this could be a $50+ stock in the coming months.


$X indeed marked the spot for profits for anyone who went long at the long term trendline break.  The options worked great and going long the stock has returned over 98% over the last 52 weeks and over 60% since the trendline break.

I am not the perfect trader.  I've had many losing trades, but it's nice every once in a while to see a stock move exactly how you think it will.

Join us in the chat room at optionmillionaires.com where its Not Just Options!  It's all about making money trading stocks.

Known 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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