Steel Stock Rallies, Reclaims Trendlines

X is back above its year-to-date breakeven level today

Deputy Editor
Dec 16, 2022 at 9:37 AM
facebook X logo linkedin

United States Steel Corporation (NYSE:X) stock is bucking the broad market this morning, last seen up 3.9% to trade at $24.57, after the company hiked its fourth-quarter guidance amid an increase in commercial steel demand in the U.S. 

On the charts, X recently pulled back to its May, August, September, and November highs -- an area that aligns with its 200-day moving average. The steel stock boasts a 4.6% year-over-year lead, while the SPDR S&P 500 ETF Trust (SPY) is down 17.2% in the last 12 months. Today's gain has the shares not only reclaiming that 200-day trendline, but back above their year-to-date breakeven as well. 

An unwinding of pessimism in the options pits could also boost the shares. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) confirms a substantial put bias, with X's 10/day put/call volume ratio ranking higher than 85% of annual readings.

Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 1.53 stands in the 84th percentile of the last 12 months. This suggests short-term options traders favor bearish bets.

The good news for those looking to speculate, is X options can be had at a relative bargain right now. The stock's Schaeffer's Volatility Index (SVI) of 52% stands in the 22nd percentile readings from the past year. In other words, traders are pricing in extremely low volatility expectations on the stock at the moment. What's more, the equity sports a Schaeffer's Volatility Scorecard (SVS) of 97 out of 100, the stock tends to outperform said expectations -- a great thing for buyers. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI