AK Steel (AKS) adds 17 cents to $5.51 and call volume is outpacing put activity on the steelmaker by a ratio of 11-to-1. 11,000 calls and 1,000 puts traded so far. The bulk of the flow is in the front month. July 6 calls are the most actives. 7,250 traded (64 percent Ask) against 5,012 in open interest. Volume in July 5 calls is approaching 3,000, with 81 percent trading at the ask. ISEE is consistent with opening buying and 30-day ATM vols are up 11 percent to 54.5. Looks like speculative call buying after a 12-month 60 percent slide in the underlying. Chinese PMI (overnight) might impact the steelmaking names tomorrow.
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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.