CLF is headed for its worst day since November after disappointing fourth-quarter results
Iron & steel stock Cleveland-Cliffs Inc (NYSE:CLF) was last seen down 9.1% at $10.13, after the company posted wider-than-expected fourth-quarter losses of 68 cents per share alongside a revenue miss. Demand for steel remains cautious amid the early stages of Trump's tariffs and the potential merger between Nippon Steel and U.S. Steel (X), which is still on the table.
Cleveland-Cliffs stock is headed for its worst daily percentage loss since its Nov. 5 post-earnings drop of 11.5%. The stock has been struggling to stage a meaningful breakout from its Dec. 30 roughly four-year low of $8.99, and was just rejected multiple times by the 150-day moving average above the $12 level. Support appears to be consistent at the $10 level, however.
Over in the options pits, 21,000 calls and 11,000 puts have already been exchanged, which represents double the overall options volume typically seen at this point. The weekly 2/28 10.50-strike and 12-strike calls are the most popular, with new positions being bought to open at the May 12 call.
Notably, while short interest has started to unwind, down 8.2% over the last two weeks, it still represents 8.7% of the stock's available float. It would take three days for shorts to cover, at CLF's average pace of trading.