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ArcelorMittal (NYSE:MT) is trying to rebound after a 20 percent drop in the previous three weeks, prompting investors to snap up calls.

MT Chart

optionMONSTER's Heat Seeker tracking program detected unusual activity in the February 43 calls, which traded 5,411 contracts--more than five times existing open interest. Institutional-sized purchases for $0.70 dominated the activity.

MT is up 4.86 percent to $40.56 in afternoon trading. The Luxembourg-based steelmaker is climbing after finding support around the $38.30 level where it traded in the August-November period.

Today's call buying in the steel stock corresponds to strength in the materials sector, which is leading the broader market higher. MT must rally another 8 percent by expiration for the calls purchased today to turn a profit. The company last reported results on Oct. 28 and will issue its next release on Feb. 10.

Overall options volume in the stock is more than twice the average level so far today. Calls outnumbered puts by about 4 to 1.

(Chart courtesy of tradeMONSTER)

Source: ArcelorMittal Bulls Hoping to Ride a Bounce