The holiday season is upon us, which means that many traders and investors are taking a much-needed break from the wild ride the markets have taken us on during the past four months.

But soon enough, after everyone has cleared their minds, they will return their focus to how they can preserve their capital going forward and also make money. Many thoughts may be about which stocks are poised to make a nice run to the upside heading into spring.

One stock they may want to be part of is U.S. Steel Corp. (NYSE:X), the biggest steel producer out there.

Fundamentally, X is estimated to earn about $2.55 a share in 2012 and also pays a dividend of about 20 cents per share. Looking at the price-to-earnings (P/E) ratio compared to the current price of the shares, X is underpriced.

A good trade to make here would be to buy the X April 26 Calls for $3.80 or less. Here’s why…

Technically, the stock recently broke through a resistance area around $28 and then pulled back to form a higher low, which may be kicking off an uptrend. Look for a trigger to enter above $26.20, which would take the stock over Friday’s high, the 8-day simple moving average and the 20-day SMA.

The April options look good here because this looks like a longer-term play. A nice target can be the 200-day SMA around $37.

The long call strategy is relatively straightforward. The trade profits when the stock rises and the call premium increases as the X option moves more and more in-the-money (ITM). Maximum profit is unlimited because X can continue to rise, and the maximum loss is $3.80 if X finishes below $26 at April expiration.