Option traders seem to be calling a top in ArcelorMittal's stock even as the stock gains today.
The steel and mining company is up 1.5 percent to trade at $21.69 after gapping higher this morning to its highest levels since October. It has run higher from support at $15 in the last two months but is now encountering resistance that has been in place since shares fell from above $32 in August.
MT's option volume tops 13,000 contracts this morning, already twice its daily average in the last month. A block of 10,000 March 23 calls traded for $0.92, the bid price at the time, but on a very tight spread just $0.02 wide.
Less than a minute later, a block of 410,000 MT shares traded for $22.12. So it appears that the options were traded against these shares in an overall position that neutralizes sensitivity to changes in the underlying stock position. (See our Education section)
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