Vale SA (VALE) $33.75 -1.00%

| December 17, 2010 | 0 Comments More

VALE loses 27 cents to $33.82 and one strategist is rolling a block of 40K Dec 34 calls to 20K Jan 34 calls, paying $1.02 for this 2X1 call spread. It likely exits a position opened in late-October when 32000 Dec 34 calls were bought at 98 cents (see 10/28 color). The stock is up 50 cents since that time, but having failed to capture the $34 level, are being liquidated at a nickel ahead of the expiration. A new position (half the number of contracts) opened in the Jan 34 calls at $1.12 per contract.

Category: All Stocks, Basic Resources, Large Cap Stocks

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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.