Pete Najarian Sees Unusual Options Activity In Steel Dynamics
Approximately 4,000 contracts of the November 22 call options were traded Monday and investors were paying a premium of around $1.40. The break even for this trade would be at $23.40.
The stock had a good trading session as it established a new 52-week high and there is also a lot of bullish activity in the steel, iron ore and metallurgical space. Najarian explained that investors believe these sectors could move much higher, but it is hard to name a catalyst for such a move. Speculations about improving demand from China could be one reason.
Steel Dynamics spiked 3.62 percent higher and closed at $22.91.
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