US Steel (X) Out-of-Money Call Options Active on Takeover Rumor (August-October)

U.S. Steel (NYSE:X) had mucho out-of-the money call options active today, from August to October, on rumors that ArcelorMittal (MT) was interested in buying U.S. Steel for $80/share. Steel analysts thought it was highly unlikely.

US Steel advances on rumor of ArcelorMittal bid - SteelGuru (Michelle Applebaum Research)
U.S. Steel stock surges on takeover rumors - Pittsburgh Tribune-Review (Affiliated Research)
UPDATE 1-U.S. Steel stock, options trade up on takeover talk - Reuters
Bullish Traders Pour Into U.S. Steel, Light Up Cree - Forbes

Here are snapshots via Yahoo Finance of the OTM X option activity in August, September and October. The last columns on the right are volume and open interest. You can see volume was above open interest and out of the money. Watch X and the steel sector. I'm putting up the Steel ETF (SLX) chart on my next post. X closed at $49.59.

August X Call Option Chain clipped (Expires on Friday)

September X Call Option Chain (clipped) $50-$60 active big time

October X Call Option Chain (clipped) $60-70 > open interest

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