What's behind call surge in ArcelorMittal
A large call trade leads today's option activity in mining and steel company ArcelorMittal, but its direction is not entirely clear.
optionMONSTER systems show that a trader bought 12,820 September 12 calls for $1.36 in volume below the previous open interest of 13,522. At the same time, he or she sold 12,820 December 12 calls for the bid price of $1.70 against open interest of just 148 contracts at that strike, so that was a new position.
This could be a new short-calendar position , which would be looking for a big move up or down. Or the trader could be rolling a short-call position, likely against long shares as a covered call because the options are in the money. (See our Education section)
MT is up 1.06 percent to $12.40. The stock was at a high of $17.99 in late January and bounced off a low of $11.15 last week. The company's next quarterly report is scheduled for June 2 .
More than 30,300 MT options have changed hands overall so far today, compared to a daily average of 8,270 in the last month.
More From optionMONSTER
