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.

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

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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.

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