Companhia Siderurgica Nacional is near its lowest level in several years, but one large trader is betting on a floor in shares of the Brazilian steel company.
optionMONSTER systems show that a trader sold 15,000 January 3 puts for the bid price of $0.15 on a wide bid/ask spread. The volume was 5 times the open interest, so this is clearly a new position.
The put selling is a bet that SID will hold above $3 for the rest of this year. If it falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)
SID was down a penny yesterday to close at $3.85. The stock was at a 52-week high above $8 a year ago but hit a seven-year intraday low of $3.76 two weeks ago.
More than 17,000 SID options traded yesterday, compared to a daily average of just 630 in the last month.
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