Deep-pocketed investors have adopted a bearish approach towards Vale VALE, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in VALE usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 15 extraordinary options activities for Vale. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 13% leaning bullish and 86% bearish. Among these notable options, 2 are puts, totaling $401,972, and 13 are calls, amounting to $749,289.
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 $3.0 to $16.0 for Vale over the last 3 months.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of Vale stands at 11236.75, with a total volume reaching 10,123.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Vale, situated within the strike price corridor from $3.0 to $16.0, throughout the last 30 days.
Vale Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| VALE | PUT | TRADE | BULLISH | 06/21/24 | $15.00 | $350.0K | 5.7K | 2.5K |
| VALE | CALL | TRADE | BEARISH | 03/15/24 | $14.00 | $61.0K | 33.0K | 427 |
| VALE | CALL | TRADE | BEARISH | 03/15/24 | $14.00 | $60.6K | 33.0K | 873 |
| VALE | CALL | TRADE | NEUTRAL | 02/16/24 | $3.00 | $59.7K | 425 | 200 |
| VALE | CALL | TRADE | NEUTRAL | 02/16/24 | $3.00 | $59.7K | 425 | 150 |
About Vale
Vale is a large global miner and the world's largest producer of iron ore and pellets. In recent years the company has sold noncore assets such as its fertilizer, coal, and steel operations to concentrate on iron ore, nickel, and copper. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets. The base metals division is much smaller, consisting of nickel mines and smelters along with copper mines producing copper in concentrate. Vale has agreed to sell a minority 13% stake in its base metals business, which is expected to become effective early in 2024, and which is likely the first step in separating base metals and iron ore.
After a thorough review of the options trading surrounding Vale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Vale
- With a volume of 8,915,884, the price of VALE is down -1.57% at $15.03.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 37 days.
What Analysts Are Saying About Vale
In the last month, 1 experts released ratings on this stock with an average target price of $15.0.
- An analyst from UBS persists with their Neutral rating on Vale, maintaining a target price of $15.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Vale with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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