CNBC Stock Blog

Steel Firm Sees Upside Options Ahead of Earnings

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.

lit 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


United States Steel

Options Trading School:




Najarian owns STLD calls.


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