Cleveland-Cliffs Options Activity Sparks Investor Concern

Cleveland-Cliffs shows significant options trading activity, with 75% bearish sentiment reflected in recent put-call ratios. This trend suggests something major is on the horizon for the stock, warranting close attention from professional investors.

Date: 03-04-2025

AI Rating: 5

Cleveland-Cliffs (NYSE: CLF) has recently seen an unusual spike in options trading activity, attracting the attention of market participants. The data indicates that heavyweights in the market are overwhelmingly bearish, with 75% of notable options leaning towards put options. This sentiment generally implies a lack of confidence in the stock's near-term price movement.

**Options Insight**

The options activities reflect considerable financial commitments of nearly $518,986 in puts against $317,655 in calls, indicating that investors are hedging against potential price declines. Such a disparity in sentiment is indicative of broader expectations about the underlying stock's performance, particularly with Cleveland-Cliffs trading at $8.73, showing a modest gain of 7.78% recently. However, the prevailing bearish sentiment could imply anticipated declines despite this recent uptick.

**Price Movement Expectations**

The report also highlights an expected price movement range of $4.00 to $27.00 over the past three months, suggesting considerable volatility in price that could be influenced by broader market factors, future earnings, or changes in commodity prices. Investors should remain vigilant for any significant shifts close to the upcoming earnings announcement scheduled in 19 days.

**Analysts' Assessment**

Despite the bearish options sentiment, some analysts have maintained 'Buy' ratings on the stock, with target prices ranging from $11 to $15. This diverging opinion signifies a divided outlook on the stock's future viability. It's essential to consider these target estimates against the backdrop of the current options activity.

Currently, the company does not disclose Earnings Per Share (EPS), Revenue Growth, or any specific Profit Margins (Gross, Operating, Net) in this report. Therefore, there is a lack of precise metrics that typically signal financial health and future profitability which professional investors often rely upon. The uncertainty surrounding Cleveland-Cliffs' operational performance could roll into anxiety among retail and institutional investors alike, affecting stock prices in the near future.

In conclusion, monitoring the trends in options trading, analysts' recommendations, and market sentiment will be key for investors considering Cleveland-Cliffs in the upcoming months.

Stocks: CLF