A trader is betting that Nucor will hold current levels as the steel company hovers near two-year highs.
optionMONSTER systems show that a trader sold a block of 5,000 July 47 puts for $2.39, below the bid price at that time. This is a new position, as open interest in the strike was just 2 contracts before today's trading began.
The put selling is a bet that NUE will remain above $47 through expiration in mid-July. The trader collects the $2.39 risk premium in exchange for the obligation to buy shares if they are below the strike price. (See our Education section)
NUE is up 0.38 percent to $48.16, continuing to trade at its level since February 2011. Shares have been trending steadily higher from their 52-week low near $34 in late May.
Total option volume in NUE is more than 5,800 this morning, already twice its full-day average over the last month. Only 120 of those contracts are calls.
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