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Relative Strength Play in UNP

Union Pacific has been putting in a range between 103 and 115 for the better part of the year. So while it didn't participate that much in the Q1 rally, it is still exhibiting some relative strength.

The weekly chart has a gorgeous look to it as well.

I'm currently watching the 112.75 - 113 level to play an anticipatory breakout to 115. And if it tags 115 one more time, it could signal a solid breakout in the name.

This is contingent on the market not falling apart and intermarket correlations to hold up well.

If you've been smart and defensive during this correction, and are building a list of names to play on strength, I'd look to keep this name near the top.

In terms of option plays, I'd be looking at bull call spreads for the summer, maybe coupled with index hedges in $IYT or $SPY.

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by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/