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U.S. Steel has seen its share price cut in half this year, but traders are betting on a sharp rebound by the end of the year.
optionMONSTER's Heat Seeker system detected the purchase of 5,000 December 16 calls in one print for $0.35 yesterday. This is clearly a new position, as open interest in the strike was a mere 56 contracts before the trade occurred.
These long calls lock in the price where the stock can be purchased through mid-December 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 $16. (See our Education section)
X rose 2.61 percent to $12.18 yesterday but is still down some 55 percent since the start of 2015. The steel maker fell to $9.66 on Oct. 2--the first time it has traded in single digits since April 2003--but has bounced with other commodity-related stocks since then as the dollar has weakened.
The company is scheduled to announce quarterly results on Nov. 3. Yesterday's total option volume in the name was below its daily average for the last month, but overall calls outpaced puts by more than 2 to 1.
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 6.4 billions as of today (€ 5.7 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. |