New Trade : call ratio spread

Stock / Symbol: [private_monthly]US Steel / X[/private_monthly]

Price at this post: $22.65

Reasoning: [private_monthly]X[/private_monthly] reported this morning and beat the street's revenue projections. However, guidance was bad and the stock is down 8.6% ($22.64). We believe all of the bad news is out of the stock and we are taking advantage of today's volatility. If the stock is over $22 by this Friday, we'll either close the trade for a profit or roll the short options over to the following week. If the stock is under $21.50, we'll sell next week's options to further lower our cost basis.

Max Risk: $745
Max Profit: $75 or 10% @ $22 by Oct 28
Profit Range: $21.60 + by Oct 28
Uncalled Return: 30%
Suggested Stop @: $18.75

Trade Details:
BTO 3 X Jan12 22.5 calls
STO -2 X OctWk4 22 calls
for a net debit of $7.45 per contract (day order, limit order)


Cost/Proceeds $745.00
Option Requirement $0.00
Total Requirements $745.00
Estimated Commission $12.95


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