U.S. Vice President Kamala Harris announced opposition to the Nippon merger
United States Steel Corporation (NYSE:X) stock is sliding today, last seen down 3.9% to trade at $36.43. The drop comes after statements from U.S. Vice President Kamala Harris during a Labor Day rally in front of union members in Pittsburgh, Pennsylvania, where she opposed the planned sale of the company to Japan-based Nippon Steel. The Democratic presidential candidate wants the American institution -- the world's first billion dollar corporation -- to remain in domestic hands.
The equity has yet to recover from its 12.8% downturn on March 13, after President Joe Biden announced his opposition to the buyout. Since then, the $42.50 region has kept a lid on breakouts, rejecting rallies April and August. On the other end of the channel, a familiar floor is emerging at $36, an area that has stepped up as support all summer. Year to date, the equity is down 25%.
Options bears are chiming in after the event. So far, 22,000 puts have crossed the tape -- seven times the put volume typically seen at this point -- in comparison to 7,427 calls. The January 2025 40-strike put is the most popular contract, followed by the 35-strike in the same series.
This penchant for puts isn't unusual, lately. X's 10-day put/call volume ratio of 8.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 97% of readings from the past year, showing puts being picked up at a rapid pace over the last two weeks.