US Steel (X) Jumps on Takeover News
Shares of United States Steel Corp. (X.N: Quote, Profile, Research) rose over 8 percent on Friday and options were active, as talk reignited that the company is a takeover target, analysts said. "U.S. Steel shares are up dramatically on renewed takeout chatter," said Paul Foster, options strategist at Web site theflyonthewall.com in Chicago. In addition, analysts said a Moscow newspaper reporting on the possibility of a deal between Severstal and U.S. Steel had pushed up shares. The takeover talk has prompted many investors to aggressively seek upside calls to bet on further gains in the stock, Foster said. The demand for options has also pushed up U.S. Steel options volatility, as investors brace for a big stock move. More than 110,000 contracts had changed hands in U.S. Steel in the U.S. options market by mid-afternoon, way above its normal volume of 15,250 contracts, according to market research firm Track Data.
U.S. Steel declined to comment. Meanwhile, shares of the company, which has been the subject of takeover rumors for months, rose $5.61, or 8.7 percent, to $70.21 in New York Stock Exchange trading. At one point, the stock traded as high as $71.82. Steel has become attractive as prices have been on the rise due to strong demand both domestically and abroad. "Overall, the steel group is up today trading very actively, as there are rumors circulating that a takeover might occur in this sector," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York. Focus your attention on this industry in the next couple weeks, big deals could take place.
Source: Reuters
posted by Stock Administrator @ 6:24 PM
US Steel (X) Jumps on Takeover News
Shares of United States Steel Corp. (X.N: Quote, Profile, Research) rose over 8 percent on Friday and options were active, as talk reignited that the company is a takeover target, analysts said. "U.S. Steel shares are up dramatically on renewed takeout chatter," said Paul Foster, options strategist at Web site theflyonthewall.com in Chicago. In addition, analysts said a Moscow newspaper reporting on the possibility of a deal between Severstal and U.S. Steel had pushed up shares. The takeover talk has prompted many investors to aggressively seek upside calls to bet on further gains in the stock, Foster said. The demand for options has also pushed up U.S. Steel options volatility, as investors brace for a big stock move. More than 110,000 contracts had changed hands in U.S. Steel in the U.S. options market by mid-afternoon, way above its normal volume of 15,250 contracts, according to market research firm Track Data.
U.S. Steel declined to comment. Meanwhile, shares of the company, which has been the subject of takeover rumors for months, rose $5.61, or 8.7 percent, to $70.21 in New York Stock Exchange trading. At one point, the stock traded as high as $71.82. Steel has become attractive as prices have been on the rise due to strong demand both domestically and abroad. "Overall, the steel group is up today trading very actively, as there are rumors circulating that a takeover might occur in this sector," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York. Focus your attention on this industry in the next couple weeks, big deals could take place.
Source: Reuters
U.S. Steel declined to comment. Meanwhile, shares of the company, which has been the subject of takeover rumors for months, rose $5.61, or 8.7 percent, to $70.21 in New York Stock Exchange trading. At one point, the stock traded as high as $71.82. Steel has become attractive as prices have been on the rise due to strong demand both domestically and abroad. "Overall, the steel group is up today trading very actively, as there are rumors circulating that a takeover might occur in this sector," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York. Focus your attention on this industry in the next couple weeks, big deals could take place.
Source: Reuters
posted by Stock Administrator @ 6:24 PM
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