Tony Zhang of OptionsPlay spoke on CNBC’s “Options Action” about unusually high options activity in United States Steel Corporation (NYSE:X), which is up almost 400% this year alone. Zhang said it is building a base and it is potentially primed for a breakout above the $30 level.
On Wednesday, he saw some activity that reflects the view it is going to be above that price level in the next 30 days.
U.S. Steel traded fairly actively on Wednesday as 195,000 contracts traded, which is almost twice the average daily volume, said Zhang. The trade that caught his attention on Wednesday was a purchase of 7,676 contracts of the September $32 calls for $1.78. The trade breaks even at $33.78 or 14.70% above the closing price on Wednesday.
