Shares of Vale are coming off of 18 month highs, but at least one trader sees more upside ahead for the Brazilian metals and mining company.
Vale finished the day at $30.85, falling 1.22 percent. Shares set a 52-week high of $31.96 on Monday and are almost 200 percent above their level of a year ago.
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Even with this long run, one trader apparently believes that the stock still has more room to grow. This investor bought 13,630 March 34 calls in one block for $0.79, according to OptionMonster's tracking systems.
The trade was well beyond the open interest of 2,827 contracts, so it was clearly new opening positions. This call buying is based on the idea that VALE will rise to levels last seen in July 2008.
Vale Competes With:
Cliffs Natural Resources
United States Steel
AK Steel Holding
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Chris McKhann is an analyst and writer for OptionMonster.