Stock Pick: ATI

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Buy ATI today. I won’t go into details, but the company is a specialty metals manufacturer that sells heavily to the aerospace industry. The aerospace industry has been strong lately reaffirmed by Boing’s recent announcement about the 787 Dreamliner.

My play here is to buy a July $120 call with a limit order of $5.90 with a trailing stop of .50.

The stock is down so far today and I think it is a good time to buy. I got in today at $4.98. I was very fortunate to get it close to its intraday low. I’m already up $72 as of 11am CST. The option is currently sitting at $5.70. I reduced my trailing stop to .20 to ensure I protect my profit. If my stop triggers today I’ll have a 10% gain in 1 day. If it keeps going up I’ll ensure that I lock in my profit if the stock drops.

This was one of my newsletter stocks. If you had subscribed you would have received this tip before market open.