Calls Purchased on Gerdau S.A. (GGB)

Shares of Gerdau S.A. GGB are higher on the session by 2.07%, currently trading at $13.82. The stock has been moving largely lower over the past six months and is currently trading below the 200-day moving average. Options traders are buying calls on the name today. A short while ago the January 2012 $15.00 call was purchased 1,200 times, on the offer, on open interest of only 2 contracts. This signals new positioning on the name. Overall call volume is now running at 2.29x the daily average with 77% of all calls traded being purchases on the offer. Gerdau S.A. is a producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction in blast furnaces and in electric arc furnaces. In Brazil it operates four integrated steel mills, including its mill, Ouro Branco unit, an integrated steel mill located in the state of Minas Gerais.