Bear Call Credit Spread on X

Heres a credit spread on United States Steel (X) from Brent Archer with a good probability of success even though the stock is close to the sold spread and we would be betting against the trend - something I usually do not do.

Good resistance at 112, stochastics is coming down, MACD is starting to come down, X has never been above $115.

So the trade would be - Bull Call Spread - 115/120 for a credit of $1.10 or for a little less risk play with the ability to close the trade if X closes above 112 or 115 is the 120/125 for a credit of $.55

You would sell the June 115 strike for 2.10 and buy the June 120 strike for 1.00 or sell the June 120 for 1.00 and buy the June 125 for .45.

Heres Brent’s explanation - Blogging Stocks

bull call spread, credit spread, united states steel