Arcelor Mittal (MT) $14.39 -9.75%
Mittal Steel (MT) loses $1.5 to $14.45 in active trading of 8.8 million shares after being downgraded to Neutral from Buy at BofA/Merrill and getting a credit downgrade courtesy of S&P (BB+/B, Outlook Negative). Shares are under pressure and the move has stirred up a flurry of activity in puts on the steelmaker. 9,650 contracts traded, which is 7X the normal and almost 3X the number of calls that have traded on the stock. Sep 14s, which are now 3 percent OTM and expiring in 50 days, are the most actives. 1,900 traded. Dec 9 and Sep 15 puts are the next most actives and 30-day ATM vols are up 13 percent to 53.
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.
