On today’s Flow Show, me and Steve Strazza put our heads together to follow the wave into the Steel sector.
Sector trends are showing us where capital is flowing and that led us to a trade idea in steel manufacturing company Reliance Inc $RS.
Here’s the chart highlighting a high consolidation that often portends to rapid near term price acceleration:
For those of us who are comfortable with risking higher dollar amounts in trades, I’d be a straight buyer of the September 350 calls.
But I prefer keeping my costs a little lower per unit of risk, so I’ll be employing a call spread here to express our bullish opinion.
Here’s the Play: [Read more…]