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.
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.