Railroad stocks are doing well today despite a recent downtrend. The industry is one of the few non-energy businesses that benefit from rising energy prices but the sector’s fortunes are closely tied to U.S. economic growth. Below, I’ve listed some stocks to add to our Watch List and some July/ August call options as well.

Burlington Northern Santa Fe (BNI, $97.93, up $3.30)
July 100 call (BNIGT, $1.30, up $0.50)
August 100 call (BNIHT, $4.00, up $1.35)

CSX (CSX, $59.50, up $2.62)
July 60 call (CSXGL, $2.05, up $0.90)
August 60 call (CSXHL, $3.60, up $1.30)

Canadian National Railway (CNI, $47.62, up $2.22)
July 50 call (CNIGJ, $0.40, up $0.25)
August 50 call (CNIHJ, $1.25, up $0.40)

Norfolk Southern (NSC, $61.18, up $2.32)
July 60 call (NSCGL, $2.30, up $1.30)
August 60 call (NSCHL, $3.50, up $1.20)

Union Pacific (UNP, $72.92, up $2.60)
July 70 call (UNPGO, $1.20, up $0.80)
August 60 call (UNPHO, $3.20, up $1.20)

After peaking in June, cargo shipments have declined cauing the sector to “sell-off” from their highs. The mid-west floods have also had a big impact on the industry and shipments are down. Still, these stocks have been in a long-term uptrend and the recent pause may offer some opportunities for us to get back in them.

Rick Rouse
Rick@OptionsMentoring.com