New Trade : X

Stock / Symbol: US Steel / X

Option Strategy: [private_monthly]diagonal call spread[/private_monthly]
Price at trade post: $29.74

Reasoning: With decent fundamentals and a good looking chart, we're going with a [private_monthly]diagonal call spread here on X. This trade allows for a 5.5% pullback in the stock (by Apr 20) without losing money and has some decent upside in the trade. We'll look to exit the trade once we're up about 10%. We expect to be in the trade for 3 to 4 weeks.[/private_monthly]

Trade Details:[private_monthly]

BTO 1 X Jan13 22.5 Call
STO -1 X Apr12 30 Call
for a net debit of $8.10 per contract (GTC, limit order)

Requirements:
Cost/Proceeds $810
Option Requirement $0
Total Requirements $810
Estimated Commission $12.95
[/private_monthly]

Max Risk: $810
Max Reward: $120 or 15% by Apr 20
Profit Range: $28.35 to $38.35 on Apr 20
Max Profit at: $29
Suggested upside stop: $32
Suggested downside stop: $22

[/private_monthly]

Non-members, click here