US Steel call volume is heavy this morning, driven by a seller of 9000 Jan12 30 calls for $2.67 when shares were near $28. Looks outright, with net delta of about 400K shares. Executing firm crossed the trade as shares quickly dipped nearly 30cents, making the print appear offer-side, but a source on the floor confirms paper sold. Last Friday on the PHLX a cust paid 1.575 for 20000 Jan 30-35 call spreads to open a new position when shares were near 27.60 and today’s trade may close half the 30s for a 20cent loss. Current total call open interest of 466K contracts in US Steel is a record for the year.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.