Steel Maker Seeing Second Wave of Call Buying
"Fast Money" Contributor
Steel Dynamics lit up with call buying early this week and saw another wave of upside activity late Thursday.
OptionMonster's systems first identified heavy trading in the January 17.50 calls on Monday, mostly going for $0.55. At that time the stock was trading just shy of $17 after consolidating in the previous week.
Yesterday those same calls were active again, this time trading for $0.80 and even a few for as much as $1. More than 3,400 of those calls changed hands as bulls looked for the stock to pop about 5 percent or more by the January expiration.
The steel producer's stock ended the session up 2.87 percent to $17.54 after more than 6,000 options changed hands, compared with an average of fewer than 900 a day. That matched the trend in the broader industry, where steelmakers saw volume 5 times greater than average.
There has been no shortage of bullishness in the steel sector. AK Steel , U.S. Steel , and ArcelorMittal have all been active this week, and even Nucor is back over its 200-day moving average.
Pete Najarian is long STLD calls.
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