Range-bound play in ArcelorMittal
Chris McKhann | [email protected]
optionMONSTER systems show that 3,000 March 13 puts were sold for $0.86. The volume was more than 10 times the previous open interest at the strike, so it is a new position in the Luxembourg-based steel maker.
Put selling is a short-volatility position, but it looks as if today's contracts may have been sold against a short position in the stock as a delta-neutral play. That means that the trader is looking for shares to stay range-bound through expiration in mid-March.
MT is down 1.19 percent to $14.10 in midday trading. It has been generally trending higher from lows under $11 in early July.