Tailwinds from China are helping CLF recover from its 2023 low
Cleveland-Cliffs Inc (NYSE:CLF) stock is up 1.8% to trade at $15.32 at last glance, though overhead pressure from its 40-day moving average is keeping this bounce off a May 31, annual low of $13.61 in check. Nevertheless, the equity is still looking to nab its third-straight daily win, after notching its biggest gain since January during the previous session, amid reports that China is looking to support the property market.
This recent rally hasn't escaped options traders. CLF just made an appearance on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 (SP400) stocks that attracted the highest weekly options volume over the last 10 days. The equity saw 278,702 calls and 88,304 puts traded, with the August 16 call standing out as the most popular contract.
This penchant for bullish bets has been prevalent for a while. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day call/put volume ratio of 5.69 that sits higher than all readings from the last year.
Cleveland-Cliffs stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 48% that stands in the low 13th percentile of annual readings. In other words, now may be a good opportunity to weigh on CLF's next moves.
Analysts lean bearish toward the security, leaving ample room for upgrades. In fact, seven of the 12 firms in coverage call it a tepid "hold." Plus, short interest rose 31.7% during the last two reporting periods, and the 39.57 million shares sold short account for 7.8% of CLF's available float. Should this pessimism unwind, the shares could continue charging higher.