United States Steel Stock Sees Call Surge on Upbeat Forecast

The company expects a strong second quarter

Deputy Editor
Jun 21, 2021 at 1:31 PM
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On Thursday, United States Steel Corporation (NYSE:X) raised its second-quarter guidance above analyst expectations, with projected adjusted EBITDA of around $1.2 billion. In response, shares are up 2.4% to trade at $23.25 at last check, and the equity is seeing a surge in call volume today. Specifically, 85,000 calls have crossed the tape so far, which is 12 times the intraday average. Most of this activity can be attributed to the weekly 6/25 24-strike call, where new positions are being opened. 

On the charts, X just took a dive, losing 20.8% last week. However, the 100-day moving average, a trendline of long-term support, appears to have caught this recent pullback. Longer term, the equity is still up an impressive 186.5% year-over-year. 

X 0621

Tailwinds could come from an unwinding of short interest, which is up 20.2% during the two most recent reporting periods. These bearish bets make up a solid 14.7% of the stock's available float. 

There is plenty of room for a round of upgrades amongst the brokerage bunch as well. Of the eight analysts in coverage, six carry a "hold" or worse rating on United States Steel stock. 

Lastly, the stock could see a short-term bounce soon, per its Relative Strength Index (RSI), which sits at 38. This indicates that the security is just on the cusp of being "oversold." 

 

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