Bullish Option Activity Alert: AKS
Bullish Option Activity Alert: AKS
AK Steel Holding Corp. (AKS), the West Chester, OH based producer of flat rolled carbon steel, is seeing unusual Call activity this morning with investors focusing on the July 16 strike Bullish option. More than 7,000 contracts have already changed hands with more than 70% taking place on the offers. With an average price of $.45, these opening transactions will need AKS to rise at least 11% by the third week of July before seeing any profits. Total option activity has already surpassed the companyís daily contract average with 21.8k Calls trading versus 1.5k Puts.
After the close on Monday AK Steel announced that, because of increased demand and higher material costs, it would raise its spot market price on its steel products. The shares have rallied more than 5% since the announcement and todayís option activity suggest investors are looking for further appreciation in the share price over the coming months. The company will be holding its Annual General Meeting this afternoon and is schedule to participate in the Steel Market Intelligence-CEO Meeting or June 21st.
"About Patrick (Rick) Mortimer
Patrick(Rick)Mortimer is the Director of Options Trading at Pipeline Trading Systems LLC. With over 25 years of options trading experience as a Broker/Market Maker on the Philadelphia Stock Exchange he now provides daily insight into today’s complicated world of equity options trading. His daily alerts and commentary are valued by institutional asset managers and hedge funds and he is often quoted by well known financial news providers such as Bloomberg, CNBC, and Reuters. Pipeline’s equity and options clients have found his analysis useful in providing option strategy’s to increase alpha for current equity holdings as well as forecasting directional stock movement based on the underlying option activity.
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