ArcelorMittal SA Stock (NYSE: MT) is Europe’s largest steelmaker and the company just unveiled technology that will reduce CO2 emissions by 30% by 2030. The company’s path to carbon neutrality has two routes that they are investing in. The first is a smart carbon route that leverages all clean energies. The other path is DRI-based route uses predominantly natural gas to produce hydrogen as the key reductant in ironmaking.
The share price has remained near the March lows, but recently surged from $8 to near $12 before beginning a consolidation phase over the past couple weeks. As the price approaches the apex of the triangular price pattern, the price is looking to breakout out one way or the other.
As the trading range of the price keeps narrowing, the option activity began to indicate a potential directional bias on Tuesday. The option volume was about 33 times the average with the call volume coming in over 40 times the average. Nearly 60% of the call option volume occurred at the ask and 70% of the put volume occurring at the bid price. Selling puts and buying calls are bullish trades. Most all of the call option activity occurred on the 17 JUL 20 $11 call, with over 70,000 contracts traded.
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Here are links to our last two unusual option activity reports.
Action to Take: The strike and expiration selection is an indication of direction and timeframe. With a cost around $0.50, the breakeven for the options by expiration is $11.50 with likely potential of reaching $12.50.
Speculators may want to consider selling the 21 AUG 20 10/9 short put vertical for around $0.33.