Option Bears Rush to United States Steel Corporation (X)

United States Steel Corporation's (X) April 25 put is in high demand today

Digital Content Group
Jan 2, 2015 at 3:01 PM
facebook X logo linkedin


United States Steel Corporation (NYSE:X) is off 1.2% today to trade at $26.44. This downward movement is nothing new for the stock, as it has underperformed the broader S&P 500 Index (SPX) by roughly 29 percentage points in the last three months, and dropped a whopping 43% since its three-year high of $46.55 on Sep. 17. Activity in the equity's options pits this afternoon reflects this bearish trend, as well.

Specifically, speculators have preferred puts over calls. Compared to what's normally seen at this point in the session, the security's puts are trading at double the average pace. They also more than triple the number of calls, with traders taking a distinct interest in the April 25 put.

Digging deeper, most of the 7,441 contracts that have crossed at this strike were likely bought to open. These traders anticipate X will drop below the $25 level by the close on Friday, April 17, when the contracts expire. Looking back, the security hasn't traded below $25 since June 20.

Today's activity may mark a shift in speculator sentiment, as X's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.58 ranks in the bullishly skewed 73rd annual percentile. Should this optimism begin to fade, the security could face more downward pressure.

United States Steel Corporation (NYSE:X) could also get hit by waning confidence within the analyst community. Even with the stock's poor performance of late, 46% of covering firms maintain a "strong buy" rating, leaving the door wide open for potential downgrades to send the shares lower.

 

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