Possible Ratio Call Spread Goes up in Mechel Open Joint Stock Company (MTL)
Shares of Mechel Open Joint Stock Company (MTL) are down .09 to 5.40 today. MTL is trading .40 off of its 52-week lows.
Today the MTL Jan 2014 7 and 10 calls traded 1,000 x 4,000 on split prices of .75/.80 and .30. The average contract volume is 930 contracts per day in the name. Open interest is 4,232 and 31,471, respectively. The implied volatility is flat in Jan 2014.
The trade looks like a customer closing a position, but the OI number tomorrow with tell the story. I could also be a very aggressive ratio call spread.
30-day implied volatility is 58%. 10-day implied volatility is 32%. 30-day implied volatility is trading above the 10-day historical volatility.
Mechel OAO is a Russia-based integrated mining and steel company.
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