Dan Nathan Sees Unusal Options Activity In United States Steel Corporation

Dan Nathan said on the show that the call options trading volume in

was 3 times higher than the daily average. The company reports earnings on January 27 and the options market is implying a 5 percent move in either direction. Nathan thinks that the stock is getting really oversold, trading 15 percent lower in 2015 and 50 percent lower from its 52-week high. There was a bullish trade on Thursday in

that caught Nathan's attention. A trader bought 15,000 contracts of the February 24 call options for $0.58, betting that the stock is going to trade above $24.58 or approximately 8 percent higher at February expiration. Nathan added that the implied volatility is still high in this name and the stock looks oversold but it could trade even lower. He likes this trade because the sentiment is very bad and the stock has a high short interest. He believes that a move to $25 is possible on some good news.