Dan Nathan Sees Unusual Options Activity In United States Steel Corporation

On CNBC's Options Action, Dan Nathan said that call options volume in United States Steel Corporation X on Tuesday was 2.5 times higher than the average daily options volume and the most of that volume was in one trade.

When the stock was trading at $8.22 a trader sold to close 11,000 contracts of the January 10 call options for $0.12 and he bought to open 6,500 contracts of the January 9.50 calls for $0.22. The trade breaks even at $9.72 by the January expiration. Nathan explained that the company reports earnings at the end of January and he expects to see some volatility. He added that although call options look dollar cheap, they are expensive in volatility terms.

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Posted In: CNBCOptionsMarketsMediaDan NathanOptions Action
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