Options Trading News

August 16, 2013  Fri 2:45 AM CT

A large trader is betting that AK Steel will stay range-bound in the long term.

More than 16,000 AKS options traded yesterday, quadruple its daily average for the last month. Dominating that action were the January 2015 3 puts.

A trader sold a block of 10,000 of those contracts for the bid price of $0.83, according to optionMONSTER systems. That was done against previous open interest of 1,289, clearly showing that it is a new position.

Just after that trade, a block of 260,000 AKS shares was sold for $3.55. Combined with the short puts, this creates an overall position a delta-neutral play that is looking for lower volatility. (See our Education section)

AKS slipped 0.82 percent to $3.62 yesterday. Shares of the steel producer were at support around $3 a month ago but finished Monday at their highest close since mid-March.
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How much lower can AK Steel go?

September 29, 2015

The steel producer, which has been hammered with the rest of the declining materials sector, is approaching its lifetime low from September 2003.



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