ArcelorMittal has traded very poorly this year, and one investor
is lowering the bar.
optionMONSTER's tracking programs detected the sale of 13,000
September 14 calls for $1.08 and the purchase of an equal number of
September 15 calls for $0.73. Volume was below open interest at the
higher strike, so there are two possible interpretations of the
One is that the investor owns shares in the Luxembourg-based steel
maker and had previously sold the 15s as part of a
strategy. He or she then rolled that position lower, collecting an
additional $0.35 of income but also sacrificing $1 of potential
upside in the stock.
Alternatively, both halves of the trade may have been opened, in
which case it was a
. Either way, the trader apparently believes that the stock won't
go much above $14 well into the third quarter. (See our
MT fell 1.17 percent to $13.55 on Friday and is down 22 percent
since the beginning of 2013. The broader market is up 9 percent
over the same period, which shows the kind of weakness it has
suffered. Other steel makers have fared similarly.
Total option volume was more than 5 times greater than average in