Cleveland Cliffs (CLF) is a high beta resource and materials stock that looks to have bottomed for the short term as it saw a close back above the high of the recent low bar. I think CLf can see the 60 level if this market rallies higher which is roughly a 50% retracement of the recent correction that took CLF from 75 to 45. This is a wild one so be aware of that but if you want some beta for the near term this one works.
If the risk trade is back on for the short term--as I think it is-- then CLF is a name that will rip higher into the next few days. It has already moved a bit and has a higher volatility so I wanna buy a call spread here to manage my risk.
Buy the June 55 call and sell the 60 call to create a bull call spread at a net debit of $1.55 or better.
This spread can be worth a max of $5 at June expy but if you get CLF up at 60 in the next week I would take profits since this is such a fast market. At the level the spread should be worth more than a double on your money. Cut losses if it CLOSES below 50. Normally I would just say to put the stop under the recent low but thats down near 46 and kind of wide.