Cleveland-Cliffs Options Traders Place High-Stakes Bets: Anticipate Price Surge By May Expiration

Cleveland-Cliffs Inc. CLF shares recorded gains on Thursday, with the stock up about 7% on the year.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Cleveland-Cliffs traded at 5x average daily call volume on Thursday.

Don’t forget to check out our premarket coverage here

There were buyers of 69,000 of the May 20 calls at an average price of $0.38 per contract, Khouw mentioned.

The trader expects Cleveland-Cliffs shares to jump at least 18% by May expiration.

Cleveland-Cliffs is scheduled to announce its Q1 earnings results after the closing bell on Monday, April 24, 2023. Analysts expect the company to post a quarterly loss of $0.20 per share on revenue of $5.21 billion.

The company recently raised the price for hot rolled steel by a minimum of $100 to $1,300 per net ton.

Price Action: Cleveland-Cliffs shares gained 2% to close at $17.26 on Thursday, and added 0.2% in the after-hours trading session.

Check This Out: Twilio's Stock Takes A Beating: Is the Bottom Just Around the Corner?