A Look Inside This Massive Trade on Cliffs Natural Resources Inc (CLF)

Cliffs Natural Resources Inc (CLF) saw a block of 18,000 puts bought to open earlier

Digital Content Group
Jan 15, 2015 at 2:54 PM
facebook X logo linkedin


Cliffs Natural Resources Inc (NYSE:CLF) is surging today, up 11% at $8.65 amid a sector-wide rally. Meanwhile, options are trading at nearly triple the typical intraday pace, and the stock's 30-day at-the-money implied volatility has popped 4.4% to 97.6% -- in the 92nd annual percentile.

Probing more deeply, CLF's most active option by a mile is the soon-to-be front-month February 9 put. A block of 18,000 contracts was apparently bought to open at the in-the-money strike, though Trade-Alert indicates these options were married puts, tied to the purchase of more than 1 million shares of CLF stock.

In any case, the massive put buy is unusual, relatively speaking. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CLF has racked up a call/put volume ratio of 1.57 -- higher than 81% of similar readings from the previous 12 months. However, with 52% of the stock's float sold short, a portion of these bearish bets may have been initiated by short sellers hedging.

Turning back to the charts, today's rally has Cliffs Natural Resources Inc (NYSE:CLF) up more than 21% in 2015. Longer term, however, the technical picture is bleak, with the stock off 45% year-over-year.

 

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