Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 9, 2013  Thu 3:16 AM CT

SID: SEE CHART GET CHAIN FIND STRATEGIES
Companhia Siderurgica Nacional is near its lowest level in several years, but one large trader is betting on a floor in shares of the Brazilian steel company.

optionMONSTER systems show that a trader sold 15,000 January 3 puts for the bid price of $0.15 on a wide bid/ask spread. The volume was 5 times the open interest, so this is clearly a new position.

The put selling is a bet that SID will hold above $3 for the rest of this year. If it falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)

SID was down a penny yesterday to close at $3.85. The stock was at a 52-week high above $8 a year ago but hit a seven-year intraday low of $3.76 two weeks ago.

More than 17,000 SID options traded yesterday, compared to a daily average of just 630 in the last month.
Share this article with your friends


Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER