Monday, December 3, 2012
CLF - Positioning for a bounce
Cliff Natural Resources (CLF) has been in a massive selloff since earnings in late October. It hit the lows which it hasn't seen 2009. Its running into a solid area of support around 27.50 level. The reason I entered 1/2 position long with April $30 calls today was because it seems it is starting to show some bid (see intraday chart below) coming in. If it drops to 27.50 level I may add the other 1/2. This could easily get back to mid-30s with some short covering.