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U.S. Steel is attracting bullish option activity ahead of its earnings report next week.
More than 3,000 Weekly 26 calls that expire at the end of Friday's session traded for $0.27 to $0.48 in a strong buying pattern yesterday. Traders also purchased about 2,000 Weekly 27 calls expiring on May 1 for $0.47 to $0.61. Volume was above the previous open interest in both strikes, indicating that new positions were established.
Long calls lock in the price where investors can buy a stock, which lets them position for a rally with limited capital. That can be safer than purchasing shares directly because only the cost of the options can be lost on a pullback. The calls can be sold anytime before they expire but will lose value if the stock falls. (See our Education section)
Several steel makers have been trending higher recently, as reflected in the SPDR Metals and Mining Fund . That ETF, whose holdings are nearly 50 percent steel names, saw bullish call buying last week.
X rose 0.51 percent to $25.55 yesterday. The steel maker hit $27.68 last Wednesday, its highest price of the year so far, while closing above its 100-day moving average for the first time since last November. The company is scheduled to issue quarterly results a week from today, April 28.
Overall option volume in the name yesterday was nearly double its daily average for the last month. Total calls outpaced puts by more than 2.5 to 1.
More From optionMONSTER
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 6.6 billions as of today (€ 6.2 billions). Its stock quote reached its lowest recent point on March 28, 2003 at US$ 10.01, and its highest recent level on November 30, 2007 at US$ 98.85. United States Steel has 176 184 431 shares outstanding. |