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September 16, 2016  Fri 12:20 PM CT

X : SEE CHART GET CHAIN FIND STRATEGIES

U.S. Steel has plunged nearly 30 percent in the last month, but traders are looking for a comeback.

optionMONSTER's tracking program detected the purchase of about 5,600 October 18 calls for $0.52 to $0.58. Volume surpassed open interest of 2,673 contracts, an indication new money was put to work.

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)

X is off 0.87 percent to $15.92 in afternoon trading and is down 26 percent in the last month. The steel maker's next quarterly results are estimated to come out after the close on Nov. 1.

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