Options Traders Bet on United States Steel Stock's Pullback

Year-over-year, X sports a 33% lead

Digital Content Manager
Feb 7, 2022 at 12:49 PM
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United States Steel Corporation (NYSE:X) is down 0.7% to trade at $22.05 at last check. The last time we checked in with the equity, it was sinking on a disappointing quarterly outlook. Shares have since bounced off a Jan. 24, bottom of $17.98, and are today looking to consolidate with a fourth-straight close above the 320-day moving average, after a dip below the trendline. Year-over-year, X sports a 33% lead.

X 320 Day

In addition, United States Steel stock just appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 Mid Cap Index (IDX) names that have attracted the most weekly options volume over the last two weeks. Specifically, 620,861 calls and 337,103 puts have crossed the tape. The most popular contract during that two-week period was the June 20 call.

MAO 0207  

There is room for optimism among the brokerage bunch, with four of the six in question calling X a tepid "hold" or worse. An unwinding of pessimism among short sellers could also boost the equity, given the 42.34 million shares sold short make up 15.9% of the stock's available float.   

A shift in the options pits may keep the winds blowing for X. A broader look shows the security sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 94th annual percentile. This means puts are getting picked up at a much quicker-than-usual clip. 


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