Gerdau is a Brazil-based steel manufacturer that has seen its shares hit, hammered, crushed — pick your adjective.
Trading in the mid-$20s last summer, GGB has fallen some 25 percent just in the last week or so.
But as shares traded around $6.47 this morning, someone goes out and buys 8,200 March 12.50 calls for $0.10. Now why in God's name would anyone believe GGB would double in the next 59 days?
- More Options Tips from Jon Najarian
It makes no sense that a short would buy the 12.50s to cover their upside. The only logical thesis I can put forward is that someone believes this stock could be acquired.
I now have positions in GGB.
Other Global Steel Giants:
Companhia Siderurgica Nacional
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.