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• Put buyer takes other side of gold trade
• Strategy looks for more gains in HCA

• MT 100% Rate It

The bears are looking for ArcelorMittal to fall more.

optionMONSTER's Depth Charge monitoring program detected the purchase of about 6,000 August 16 puts against open interest of just 537 contracts. Most of the large blocks priced for $2.36 to $2.38.

MT fell 5.03 percent to $14.15 yesterday. Those options are in the money because their strike is above the share price. The puts will closely track downside in the European steel maker and lose money if the stock rallies or holds its ground.

The choice of in-the-money puts indicates that the trader is a speculative bear rather than a shareholder looking to protect a long position. Using puts allows the trader to bet against the stock with limited risk, avoiding the peril of a short squeeze that could bring unlimited losses. (See our Education section)

MT has lost more than one-quarter of its value in the last three months as weakness in Europe and China sends investors running from economically sensitive stocks in the materials sector.

The Depth Charge also showed the purchase of about 3,000 August 15 puts earlier in the session for $1.58 and $1.58. Overall option volume was more than triple the daily average, with puts dominating the activity.

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