Options Trading News

October 3, 2013  Thu 10:55 AM CT

ArcelorMittal is the latest of many names that have seen put selling today.

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. 
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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