US Steel (X) rallied this morning and is trading up $2.17 to $27.14. Options volume on the steelmaker is running 2.5X the daily average, with 86,000 calls and 23,000 puts traded on the stock so far. The top trade is a Nov 26 – 28 call spread sold at 90 cents, 7500X. Both contracts now traded more than 10K and might roll positions opened just yesterday when open interest in Nov 26s inreased by 12,000. If so, the contract, which traded 14830X at a VWAP of $1.17 yesterday, is being liquidated at $2.35. New positions being initiated in Nov 28s for $1.45. Some of the steel names are rallying around news that Iron Ore prices are down sharply as Chinese companies are buying less of the steel-making ingredient (Dow Jones).