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Anadarko PetroleumToday was a very gloomy day in the stock market with Oil reaching new highs and everything else losing -- almost. Among the few winners, and I mean very few, Apple Inc. (NASDAQ: AAPL), oil, and specialty steel were up. I went through my watch list and found this very short list of winners:

Anadarko Petroleum (NYSE: APC) $78.49, up +$0.95 or 1.23%

Apple Inc (NASDAQ: AAPL) $185.90, up +$2.30 or 1.25%

Halliburton (NYSE: HAL) $49.92, +$0.85 up +$1.73%

Precision Drilling TR (NYSE: PDS) $27.90, up $1.13, or 4.22%

Reliance Steel and Aluminum (NYSE: RS) $67.37, +0.$52, or 0.78%

Valero Energy (NYSE: VLO) $50.12, up +$0.43 or 0.87%

Continue reading Apple, Oil, & Steel were rays of light on gloomy market day

Apple, Oil, & Steel were rays of light on gloomy market day originally appeared on BloggingStocks on Tue, 20 May 2008 20:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAPLAnadarko PetroleumAnadarkoPetroleumAPCApple Inc.AppleInc.HALhaliburtonoliPDSPrecision DrillingPrecisionDrillingreliance steel and a...RelianceSteelAndA...RSSheldon LiberSheldonLibervalero energyValeroEnergyVLOTue, 20 May 2008 20:15:00 EST<![CDATA[Reliance Steel (RS) drops on lower Q2 guidance]]>http://www.bloggingstocks.com/2008/04/17/reliance-steel-rs-drops-on-lower-q2-guidance/http://www.bloggingstocks.com/2008/04/17/reliance-steel-rs-drops-on-lower-q2-guidance/http://www.bloggingstocks.com/2008/04/17/reliance-steel-rs-drops-on-lower-q2-guidance/#commentsFiled under: , , , , , ,

RS logoReliance Steel & Aluminum Co. (NYSE: RS) shares are falling despite a positive Q1 earnings announcement after the company forecast a second-quarter profit between $1.50 and $1.60 per share, less than analysts' estimates of $1.66 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on RS.

After hitting a one-year low of $39.91 in August, the stock hit a one-year high of $64.27 yesterday. This morning, RS opened at $61.90. So far today the stock has hit a low of $59.75 and a high of $63.95. As of 12:20, RS is trading at $62.11, down 2.16 (-3.4%). The chart for RS looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a May bear-call credit spread above the $70 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in one month as long as RS is below $70 at May expiration. Reliance would have to rise by more than 13% before we would start to lose money. Learn more about this type of trade here.

RS hasn't been above $65 at all in the past year and has shown resistance around $65 recently. This trade could be risky if today's earnings do not hold the stock down, but with a slumping economy, times do not look too good for steelmakers.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in RS.

Reliance Steel (RS) drops on lower Q2 guidance originally appeared on BloggingStocks on Thu, 17 Apr 2008 13:46:00 EST. Please see our terms for use of feeds.

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