ARCELORMITTAL : Steel bulls turning to ArcelorMittal

M5042566

22 sept. 2014 •17:05

Pour info, même si la baisse de ce jour semble invalidée cette info :
Source
http://finance.yahoo.com/news/steel-bulls-turning-arcelormittal-104510336.html

Steel makers have been ripping higher, and now the options are flowing in ArcelorMittal.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 20,000 December 16 calls for $0.41 and the sale of an equal number of December 13 puts for $0.13. Volume was more than triple open interest at both strikes, which indicates new positions were initiated.

Long calls lock in the price where a stock can be purchased, letting investors cheaply position for a rally. Selling the puts generated income, lowering their cost to just $0.28, but also created the obligation to buy shares if they drop below $13. Combining the two positions is highly bullish, with the potential for huge gains but also big losses. (See our Education section)

MT rose 1.49 percent to $15.03 yesterday. The Luxembourg-based company has been one of the worst-performing members of its industry group in the last three months, lagging domestic competitors like U.S. Steel, Nucor, and Steel Dynamics.

Bullish traders have already cleaned up in some of those names. STLD and NUE calls, for instance, lit up the Heat Seeker in August and have now appreciated several hundred percent.

MT's overall option volume was 23 times greater than average yesterday, with the bullish combination accounting for about two-thirds of the total.