Options Trading Points to Steel Merger
Another day, another rumor that AK Steel is going to be taken over — this time with Sumitomo Metals mentioned as the potential suitor.
While we have no information that can confirm any interest from the 400-year-old Japanese conglomerate, we do note unusually high options activity.
Average daily turnover of calls over the last 30 sessions has been 6,400 contracts, but more than 7,400 traded in the first 90 minutes of today's session alone. Much of the activity involves a large spread trading out in March.
- AKS: Complete Options Chain
- AKS: Insider Trading
- More Options Tips from Jon Najarian
(AK Steel common shares on the NYSE: )
OptionMonster's tracking systems show that someone bought the March 12.50-March 20 bull call spread for $1.35. This spread is still trading for $1.35 to $1.45, while the underlying shares are up nearly 2 percent to about $10 at midday.
Steel Maker Rivals:
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.