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AK Steel is up today, and one investor believes that it will keep on running.

optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 August 7 calls for $0.30 and the sale of an equal number of August 6 calls for $0.70. Volume was below open interest in the 6s but not the 7s, which indicates that an existing position was closed and rolled to the higher strike.

The investor had previously bought the lower-strike calls, anticipating a rally. Now that it has occurred, he or she is adjusting the position. The trader recovered $0.40 of capital in the process and remains exposed to further gains if the stock continues to rally.

AKS is higher by 1.64 percent to $6.20 in morning trading and 12 percent in the last week. Steel and metal stocks took a beating earlier in the year as investors worried about a slowing global economy and financial contagion in Europe. But they've been rebounding more recently as bargain hunters step in and short sellers cover.

The Heat Seeker also detected buying in the AKS July 5 calls for $0.51 to $0.53 on June 19. Those contracts have more than doubled to $1.24.

Overall option volume is almost twice the average amount, with calls outnumbering puts by 23 to 1.

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