AK Steel (AKS), which is down 17 cents to $18.17 and off 22.4 percent in a little over two weeks, is seeing some call buying Friday. 9,175 contracts traded, which represents 3X the expected and 4.5X the number of puts. Oct 20 and Nov 21 calls are the most actives and, while a lot of the trades hit mid-market, ISEE indicate that 3,660 AKS calls (or 88 percent of the volume on the ISE) were bought to open Friday. Implied vols (average) are up to 70.6, from about 67.3 yesterday. Co. announced plans to add a surge charge of $210 per ton on electric steel prices shipped in November 2009 — but it isn’t clear whether the call buying is related to the news because the share price certainly didn’t react.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.