27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
United States Steel Corporation (NYSE: X) is now up 106.3 percent in the past month. Although that’s quite a one-month move, the stock remains down 29.6 percent in the past year. However, shareholders are hoping that the February/March surge is only the beginning of a longer-term trend change for the ailing stock. Here’s a technical look at the stock’s chart.
First off, U.S. Steel bulls certainly have plenty of reason to be optimistic about the stock’s recent move. Not only did the stock break above its December highs in the $9 region, it blew through its October and November highs at around $13.
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Following a new multi-year low of $6.11, these new highs are a good sign that the stock’s decline now may be over.
The next potential stumbling block for the stock could be $21.25, where it met with resistance in August. However, the big hurdle to clear in the long-term will likely be in the $26-27 range that served as the 2015 high and withstood several tests throughout the year.
In the shorter-term, however, any stock that doubles in a month is at risk of being over-heated, and U.S. Steel’s RSI of 77.4 confirms this risk. It wouldn’t be surprising to see the stock pull back to its 200-day simple moving average in the $13 region before potentially making a run at $20.
Disclosure: the author holds no position in the stocks mentioned.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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