Gerdau is bouncing off multi-year lows from yesterday, but a large trade appears to be looking for more volatility in the beaten-down Brazilian steel company.
A print of 4,000 June 7 puts was bought today for the ask price for $0.30, optionMONSTER systems show. This is clearly a new position, as volume was twice the strike's open interest before the trade appeared.
Less than a minute later, the biggest block of GGB stock traded with 160,000 shares going for $7.50. The combination of stock and options creates a long-volatility play that is looking for GGB to make a big move up or down. (See our Education section)
GGB is up 1.88 percent to $7.59 in early afternoon trading. It hit a low of $7.40 yesterday, its lowest intraday price since October 2011. Shares were above $9 coming into 2013.
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