Someone with a lot of money to spend has taken a bearish stance on Cleveland-Cliffs (NYSE:CLF).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with CLF, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 74 uncommon options trades for Cleveland-Cliffs.
This isn't normal.
The overall sentiment of these big-money traders is split between 39% bullish and 60%, bearish.
Out of all of the special options we uncovered, 21 are puts, for a total amount of $1,023,125, and 53 are calls, for a total amount of $3,391,472.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $10.0 to $40.0 for Cleveland-Cliffs over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Cleveland-Cliffs's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Cleveland-Cliffs's whale activity within a strike price range from $10.0 to $40.0 in the last 30 days.
Cleveland-Cliffs Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CLF | CALL | TRADE | BEARISH | 05/20/22 | $23.00 | $145.0K | 12.5K | 4.9K |
| CLF | CALL | SWEEP | BULLISH | 05/20/22 | $23.00 | $139.2K | 12.5K | 5.2K |
| CLF | PUT | TRADE | BEARISH | 01/20/23 | $27.00 | $137.5K | 2.6K | 457 |
| CLF | PUT | TRADE | BEARISH | 01/20/23 | $27.00 | $117.7K | 2.6K | 707 |
| CLF | CALL | SWEEP | BULLISH | 10/21/22 | $27.00 | $95.3K | 1.3K | 2.0K |
Where Is Cleveland-Cliffs Standing Right Now?
- With a volume of 17,105,694, the price of CLF is up 2.71% at $29.16.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 29 days.
What The Experts Say On Cleveland-Cliffs:
- Goldman Sachs has decided to maintain their Buy rating on Cleveland-Cliffs, which currently sits at a price target of $31.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
