Brian Stutland's United States Steel Corporation (X) Trade
On CNBC's Fast Money, Brian Stutland suggested investors take a look at United States Steel Corporation (NYSE: X). He is interested in this stock, because of the take over rumors that are spreading on the Wall Street. Mr. Stutland believes that United States Steel Corporation (X) might become a take over candidate, and he wants to use options to profit on that rumor.
He thinks that it is not smart to make this trade by buying a call option, because you have to be right on the time frame. Instead, he wants to buy a call spread. Specifically, he wants to sell the September 55 call for $1.25, and buy the September 45 call for $4.50. This structure would cost him $3.25, and his break even point would be at $48.25.
United States Steel Corporation (X) fell 3.65% today, and closed at $47.78.
