Buy Alert: October 14, 2014

Marcus Haber | October 14, 2014

Buy Alert: October 14, 2014

Trade Details

Buy Cliffs Natural Resources (CLF) December 10 Calls for $1.25 or better

Why?

One thing about a broad market selloff, it tends to open up buying opportunities. That’s especially true for a stock already in the doghouse, like CLF. The largest iron ore producer in North America is down 68% this year. But, things may finally be starting to turn around.

You see, iron prices spiked higher on news of rising imports from China. If China is really ramping up orders, that’s great news for producers like CLF. But, even if iron ore prices remained stable, CLF would still be due for a bounce. In other words, the odds should definitely be in our favor for this trade.