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November 28, 2016  Mon 6:45 AM CT

Traders are playing for even more gains in Cliffs Natural Resources.

OptionMonster's monitoring program shows that 5,700 Weekly 10 calls expiring on Dec. 2 were bought for $0.15 to $0.40 while 4,500 December 9.50 calls were purchased for $0.56 to $0.93 on Friday. Volume exceeded open interest in both strikes, indicating that new positions were established.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

CLF rose 7.72 percent to $9.91 on Friday and is up 56 percent in the last three months. The iron-ore and coal miner is expected to release quarterly results in pre-market hours on Jan. 26.

Overall option volume in CLF was twice its daily average on Friday. Calls outnumbered puts by a bullish 6-to-1 ratio.

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