| Another huge bullish bet on Cliffs | |
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Traders are making huge bullish bets on Cliffs Natural Resources for the second time in less than a month.
optionMONSTER's Heat Seeker system shows that 20,000 July 6 calls were bought for the ask price of $0.34 in one print this morning. This is clearly a new position, as open interest in the strike was just 1,164 contracts before the trade occurred.
These long calls lock in the price where the stock can be purchased through mid-July no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $6. (See our Education section)
This follows the purchase last month of 17,000 May 6 calls and 19,000 Weekly 5 calls that expired last Friday. The stock closed at $4.58 on the day of those trades, March 18, after hitting its lowest intraday price since 2003 earlier in that session.
CLF has risen modestly since then but is down 2.26 percent today to $4.76. The mining company and natural-resources company, which provides iron-ore and metallurgical coal for the production of steel, has been hammered for years but has recently drawn upside interest with economic stimulus in Europe and China.
It is scheduled to announce quarterly results on April 28.
Total option volume in the name already tops 33,700 contracts today, triple its full-session average for the last month. Overall calls are outpacing puts by a bullish 6-to-1 ratio.
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 3.5 billions as of today (€ 3.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |