Vale tried to rally early, but then the bears stepped in.
optionMONSTER’s Depth Charge monitoring system detected the purchase of 5,000 March 12 puts for $0.67. Volume dwarfed previous open interest of 28 contracts, which indicates new positions were initiated.
Puts lock in the price where the Brazilian mining company can be sold, so they will gain value if shares fall. Today’s buying could be an outright bearish play, looking for further downside in VALE, or it could be a hedge on a long position in the name.
— Option Monster