iBankCoin
The first hit is always on the house.
Joined Aug 2, 2009
1,847 Blog Posts

OA EARNINGS PLAY: X

You might recall an earnings trade we took last year in APOL. It was a stock that had been left for dead, and a trade that had zero expectations priced into it going into earnings.

I’ve found a strikingly similar set-up in US Steel.

On the Macro side, I like that China ($SSEC) is breaking from a multi-year range, and that the steel stocks have quietly rallied to the upper end of multi-year ranges, and X is sitting at an identical spot that APOL was when it gapped and sprinted after its earnings announcement.

I have zero insight as to what US Steel will report next week. HOWEVER, I do recognize in a stocks volume structure, what would happen if it just gapped a little higher. It would find initiative buyers and start that move to $40 that we’ve been talking about for over a year.

Disclaimer: Long Aug 28 Calls

OA

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22 comments

  1. halloweenpleb

    Amen

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  2. Dr. Fly

    CARL ICAHN WANTS TO OWN US STEEL
    https://www.youtube.com/watch?v=A0T6lUZLtXo

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    • Formergeek

      Uncle Carl is a meddler not sure anybody but Carl wins when he gets involved

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  3. granpa

    OA, What stike, which month? (Just playing Player)

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  4. granpa

    $STLD looked good

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  5. ff

    interesting pick Jeff. I bought some STLD last week and then it popped 8% on a IT taking another steel company over. Weird given everything I’ve heard is that pricing will continue to be soft through year end due to chinese dumping

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  6. ff

    huge volume on the 30 strike Aug 16th exp

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  7. the osu

    Probably best to wait until later today after the monster sell off

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  8. k_melancon

    OA – do you know when the solar tariff ruling is set to be released?

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  9. hisnibs

    I bought the X Aug 29’s yesterday and I am loving it today!!!

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  10. bear54

    FSLR – was that a tease

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  11. granpa

    Bot. $GNRC shares just under 44.
    Only need one Named storm and it’s up on a down day.

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  12. cheesetrader

    FEYE looks good

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  13. acidbath

    Got the X 28’s today.

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  14. boyaj

    OA, I took your advice and bought these last Friday. Booked my gains today. Just wanted to say thanks, and appreciate the hard work and insight you provide!

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  15. SabreBill

    500%+ Thanks Jeff! Just what I needed, took the gifts from the trading gods and cashed out. Good times!

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