Cleveland Cliffs Inc (CLF)

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Red-Hot Metal Stocks to Buy: Cleveland Cliffs (CLF)


Source: The thinkorswim® platform from TD Ameritrade

Ohio-based Cleveland Cliffs is a producer of iron ore and steel products. Its cheap share price and high volatility have made it a favorite pick for momentum traders looking for action. It boasts a beta of 2.07 and currently has an average true range of $1.25. That translates into 5% daily moves. Its price history reveals several boom and bust cycles.
In other words, instead of a steady climb over time, we’ve seen epic periods of gains followed by massive drawdowns. While a problematic stock to buy and hold, its personality is perfect for tactical traders. Though its share price has grown 10-fold from $2.63 at the pandemic lows and may seem richly priced, it’s previously been higher than $100. So there’s fare more upside if this inflationary cycle follows past ones.
Upside call options are in high demand, and it’s providing great pricing for call vertical spreads.
The Trade: Buy the April $26/$30 bull call spread for $1.15.
The max loss is $1.15, and the max gain is $3.85 if prices grow past $30

https://investorplace.com/2022/03/3-red-hot-metal-stocks-to-buy/