Steel Stock Breaks Out After Buyout

X is trading at roughly 13-year highs

Deputy Editor
Dec 18, 2023 at 10:25 AM
facebook X logo linkedin

It's official, United States Steel Corporation (NYSE:X) is being bought by Japan-based Nippon Steel for $14.9 billion, including debt. Nippon Steel is buying the company at $55 per share -- a nearly 40% premium to Friday's close -- as it looks to move toward 100 million tons of global crude steel capacity.

Last seen up 26.2% to trade at $49.65, X is heading for its highest close since 2011. The shares are on track for their best single-day percentage pop since Aug. 14 36.8%, and are now nearly 100% higher on the year.

X's options pits are in a frenzy following the news, with total options volume running at six times the intraday average amount. New positions are being bought to open at the most popular contract, the weekly 12/22 50-strike call. 

Today's call run is a deviation from the recent put bias. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put call/put volume ratio of 0.80 that ranks higher than 75% of annual readings.  So while calls still outflank puts on an absolute basis, the high percentile suggests the ratio is on an uptick that nears an annual high rate.

The good news for those looking to speculate, is X options can be had at a relative bargain right now. The stock's Schaeffer's Volatility Index (SVI) of 31% stands in the 18th percentile readings from the past year. In other words, traders are pricing in extremely low volatility expectations on the stock at the moment.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI