Trade Adjustment / New Trade : X

Stock / Symbol: US Steel / X

Option Strategy: [private_monthly]diagonal call spread[/private_monthly]

Trade entry date: Mar 26
Price at trade entry: $29.66
Price at Apr 27 adjustment: $28.32
Price at Jun 12 adjustment: $18.20
Price at Aug 6 adjustment: $23.30
Price at Aug 17 adjustment: $22.66
Price at this adjustment: $19.60

Current Position:[private_monthly]
Long 3 X Jan13 22.5 Calls
at an effective cost of $3.07 per contract

[/private_monthly]

Update: Going to take advantage of this pullback in X and [private_monthly] add one more long Jan13 22.5 call to further lower our cost basis. This addition brings our current break-even down to $25.20 from $25.57 by Jan13 expiration. With X trading back up to around $23, we'll either close the trade for a slight loss or sell some near term 23 strike calls.

Members New to this Trade: This is a good spot to go long X as we think it's got about one point downside risk and 3 to 4 points upside reward. So, if you're not currently in the position, we suggest purchasing 4 Jan13 22.5 calls here. Set your downside stop with X at/under $18.49.

Adjustment Details:[private_monthly]
BTO 1 X Jan13 22.5 Call
for a max debit of $1.35 per contract (Day Order, Limit Order). Try to get closer to the mid price, currently at $1.29.

or, if new to this trade:
BTO 4 X Jan13 22.5 Calls
for a max debit of $1.35 per contract (Day Order, Limit Order). Try to get closer to the mid price, currently at $1.29.

Max Risk Existing / New: $1,056 / $540
Max Reward: unlimited
Profit Range Existing / New: $25.20+ / $23.85+ by Jan13 expiration

Non-members, click here