These call buyers may have wished to make a bullish statement that the stock of CLF was undervalued.
Bullish investors likely wanted to position themselves for a rally in Disney stock, with the pending acquisition of Twenty-First Century Fox but wished to do so with limited downside risk.
United Continental Holdings Inc's shares flew higher on strong quarterly results Wednesday, July 18, handing huge gains to bullish option traders.
Bullish options traders double their money in VF Corp. on Monday, July 16, ahead of quarterly results due at the end of the week.
These call buyers may have placed their call purchases on the belief that the miners of precious metals would report good production numbers.
The August $20 calls sold for $2.31 on Thursday, nearly twice their purchase price.
Investors likely believed that OPEC and its partner nations would reach a tempered agreement with crude production hikes.
Long puts lock the price where investors may sell a stock no matter how far it might drop, gaining value in a selloff with the potential for significant leverage.
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