Vale S.A. (VALE) is seeing a trader looking for shares to make a move higher by November expiration. Our systems show a trader selling 8,000 November 21 put for $.60 and at the same time bought 8,000 November 25 call for $.71, for a net debit of $.11. The type of trade that was put on is called a risk reversal, where the trader used the proceeds of selling the puts to offset the purchase of upside calls.

We are also seeing activity in the Jan 17.50 puts, where activity looks to be transacted by the same trader. The Jan 17.50 puts were sold 500 times for $2.10.