ArcelorMittal is down sharply this year, but one trader apparently believes that further downside will be limited.
optionMONSTER systems show that a trader sold 2,300 September 13 puts in one print for $0.87 yesterday. This is clearly a new position, as open interest in the strike was just 78 contracts before the session began.
The put selling is a bet that MT will hold above $13 through mid-September. If the stock falls below that strike price, the trader will face the obligation to buy the shares. (See our Education section)
MT rose 1.94 percent to $15.21 yesterday, bouncing from its lowest close since November in the previous session. Shares of the Luxembourg-based steel and mining company have been falling for the last month since testing resistance at $18, the same level where the stock traded on the first day of 2013.
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