Cleveland-Cliffs Stock Adds 10% on Higher Annual Fixed Prices

Options players are targeting CLF at an elevated clip today

Deputy Editor
Dec 22, 2022 at 10:36 AM
facebook X logo linkedin


Higher annual fixed prices for steel are boosting shares of Cleveland-Cliffs Inc (NYSE:CLF), which now stand 10.1% higher to trade at $16.66.

The steel maker said it will achieve these prices in the calendar year 2023, and anticipates an average selling price of $1,400 per ton, compared to $1,300 in 2022. The company also said that it expects "significantly lower" steelmaking unit costs. 

Options traders are taking note. Cleveland-Cliffs stock's normally quiet options pits have already seen more than 21,000 calls and 5,110 puts exchange hands, which is seven times the intraday average volume. The weekly 12/30 and 12/23 17-strike calls are the two most popular contracts, respectively, and new positions are being opened at both.

Today's call buying is in stark contract to the norm. While calls volume is still outnumbering puts on an overall basis, CLF's 50-day put/call ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 91st percentile of annual readings.

Echoing this, Cleveland-Cliffs stock's Schaeffer's put/call open interest ratio (SOIR) of 0.71 stands higher than 82% of reading from the past 12 months. In other words, short-term options traders are heavily put-biased.

Now could be the time to join these traders, as CLF's options can be had for a bargain. This is according to its Schaeffer's Volatility Index (SVI) of 54%, which sits in the 18th percentile of its 12-month range, which indicates options players are pricing in relatively low volatility expectations right now. What's more, the security tends to outperform said volatility expectations, according to its Schaeffer's Volatility Scorecard (SVS) rank of 92 (out of a possible 100).

From a technical standpoint, Cleveland-Cliffs stock has underperformed on a year-to-date basis. The equity sports a 24.2% year-to-date deficit, while the SPDR S&P 500 ETF Trust (SPY) is 19.6% lower in the same timeframe. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI