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6 Trades to Double Your Money by the End of Summer

OptionsZone Experts, July 4, 2009 Free Trading Guides

Nucor Corp. (NUE)

By John Lansing

Nucor Corp. (NUE), the second-largest U.S. steelmaker, appears to be in an ascending triangle pattern, which is a short-term bullish pattern that takes approximately three months to play out. An ascending triangle is characterized by a flat top and a rising bottom trendline. However, NUE's ascending triangle has more of a corrective nature. It recently almost hit its bottom trendline, which means a bounce back typically follows. It has to hurdle its resistance just below the $50 mark, but I believe it will do that and climb right up to the $55 level.

The best way to take advantage of this impending move is to buy the NUE August or September $55 strike calls. They both appear to be really great plays, especially at these levels.

Learn how to close out option trades for triple-digit profits.

Next: Cliffs Natural Resources (CLF)

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