Market News

February 28, 2013  Thu 2:14 AM CT

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. 
News Archives
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »