VALE loses 38 cents to $22.98 and it looks like an April 23 – 24 put spread is sold on the Brazilian metals company at 62 cents, 6250X. It might close, as both legs of the spread are now in-the-money after a three-day 10.5 percent slide in the underlying. The stock was under fire Tuesday on reports the company has set aside money to fight the government over taxes. Implied volatility in the options increased by 19 percent yesterday and are up another 4.5 percent to 36 today.
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.