X: US Steel Attracts A Bullish Trade

A month has passed since the last earnings report for United States Steel Corporation (X). Shares have added over 25% since then, outperforming the market. One option trader believes that the recent positive trend will continue leading up to the stock’s next earnings release.

The trader sold 4625 May 30 puts on Friday at 07:00am and seconds later purchased the same number of April 42 calls. This is considered an aggressive bullish trade where the option trader uses proceeds from the put sale to finance the call buying.

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The daily stock price chart shows a number of bullish patterns that have formed over the last several months. Should the stock power above the recent $42 resistance, it could quickly reach $45-46 level.

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