What the Options Market Tells Us About Vale

Investors with a lot of money to spend have taken a bullish stance on Vale (NYSE:VALE).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with VALE, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for Vale.

This isn't normal.

The overall sentiment of these big-money traders is split between 60% bullish and 40%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $284,570, and 2 are calls, for a total amount of $374,726.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $15.0 to $18.0 for Vale over the recent three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Vale's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Vale's whale trades within a strike price range from $15.0 to $18.0 in the last 30 days.

Vale Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Vale

Vale is a large global miner and the world's largest producer of iron ore and pellets. In recent years the company has sold noncore assets such as its fertilizer, coal, and steel operations to concentrate on iron ore, nickel, and copper. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets. The base metals division is much smaller, consisting of nickel mines and smelters along with copper mines producing copper in concentrate. Vale has agreed to sell a minority 13% stake in its base metals business, which is expected to become effective early in 2024, and which is likely the first step in separating base metals and iron ore.

Following our analysis of the options activities associated with Vale, we pivot to a closer look at the company's own performance.

Current Position of Vale

• With a volume of 8,195,937, the price of VALE is down -0.59% at $15.12.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 83 days.

What The Experts Say On Vale

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $17.875.

• Showing optimism, an analyst from Goldman Sachs upgrades its rating to Buy with a revised price target of $19.
• An analyst from Deutsche Bank has revised its rating downward to Hold, adjusting the price target to $17.
• An analyst from B of A Securities has elevated its stance to Buy, setting a new price target at $20.
• Maintaining their stance, an analyst from RBC Capital continues to hold a Outperform rating for Vale, targeting a price of $15.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Vale with Benzinga Pro for real-time alerts.