Market News

October 17, 2016  Mon 10:04 AM CT

Traders are looking for a pop in AK Steel before its earnings report next week.

optionMONSTER's tracking program detected the purchase of about 5,700 October 4 calls for $0.56 to $0.66 today. This represents fresh buying, as open interest in the strike was only 393 contracts before the session began.

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)

AKS is up 1.77 percent to $4.59 in morning trading but is down 23 percent in the last three months. The steel producer's next quarterly results are scheduled for release in pre-market hours on Oct. 25.

Overall option volume is about average in AKS so far today. Calls outnumber puts by a bullish 9-to-1 ratio.

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