Nucor broke out yesterday, and the bulls piled in.
optionMONSTER's tracking systems detected the purchase of 8,400
October 52.50 calls , most of which priced for $1.30. Volume was
more than twice open interest at the strike, which indicates new
money was put to work on the long side.
Calls lock in the price where investors can buy the steelmaker,
which provides them with cheap exposure to a rally. (See our
section.) This can result in significant leverage if shares move in
the right direction.
NUE rose 2.84 percent to $52.49 yesterday. It's now back above its
200-day moving average and is attempting to rouse itself from a
year of sideways movement. Other related companies like United
States Steel and Steel Dynamics have been strong recently.
Total option volume was 10 times greater than average in the
session, with calls outnumbering puts by 11 to 1.
(A version of this post appeared on
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