GO
Loading...

Steel Firm Sees Upside Options Ahead of Earnings

Tuesday, 2 Feb 2010 | 8:08 AM ET

Steel Dynamics is seeing upside options activity ahead of its earnings release tomorrow after the market closes.

The steelmaker finished the regular session yesterday up nearly 6 percent to $16.08 and ticked up another 0.37 percent in after-hours trading. The company's shares have dropped rapidly since Jan. 11, when they were trading over $20.

OptionMonster's screenslit up yesterday with action at the February 17 contracts, where traders snapped up more than 6,200 calls mostly for $0.35 and $0.40 in some large institutional-size blocks. That was well over the open interest of 2,262 at the strike, which has averaged a mere 148 calls for the last month.

The stock would need to gain roughly 8 percent for those calls to profit before they expire on Feb. 19. Overall option volume was double the average, with 8,700 total calls trading against 705 puts.

___________________________

Steel Dynamics Competes With:

AK Steel

Nucor

United States Steel

___________________________
Options Trading School:

___________________________

___________________________

Disclosures:

Najarian owns STLD calls.

___________________________

Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

___________________________

Disclaimer

  Price   Change %Change
AKS
---
NUE
---
STLD
---
X
---

Featured