Mechel Breaking Out; Calls Active (MTL)

Shares of Mechel OAO MTL are higher on the session by 2.45%, currently trading at $25.89. The stock has been moving largely higher over the past four months and is now making a run higher, above the 50-day and 200-day moving averages. Above $25.42 and the stock has plenty of room to run. Options traders are buying calls on MTL today. A short while ago the January 2011 $30.00 call was purchased 4,000 times, on the offer, on open interest of only 3,566 contracts. This indicates new positioning on the strike. Overall call volume is now running at 11.14x the daily average with 89% of all calls traded being purchases on the offer. Mechel OAO is an integrated mining, steel, ferroalloys and power company. The company operates in four segments: mining, steel, ferroalloys and power. Its mining segment produces coking and steam coal, as well as iron ore and iron ore concentrate.