Bullish Option Activity Alert: MT
Bullish Option Activity Alert: MT
Dutch-based manufacturer of finished and semi-finished steel products Arcelor Mittal (MT) is seeing Bullish option activity today with 2 notable trades. A seller appeared in the November 17 Puts this afternoon with 10,000 contracts trading over a 15 minute time frame with the largest block being 8,550 contracts at $.80 when the market was $.79-$.83. Looks like an opening trade that will see the initiator pocket the premium collected today as long as the shares remain above $17 going into November expiration. Another Bullish trade saw the purchase of the December 19-23 Call spread 2,500 times for $1.39. This trade will begin to show profits if the stock climbs at least 7.7% over the next two months. Total contract volume so far today is double the companyís daily average with 6.8k Calls trading versus 12.7k Puts.
The steel sector has had a horrible summer due mostly to the global recession and an increase in the price of raw materials. MTís shares have lost as much as 58% of their value since the beginning of July 2011. Todayís option activity suggests some investors believe that demand for steel, and in turn steel prices, will increase during the remainder of 2011. The company is scheduled to report its Q3 earnings on November 3rd.
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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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