Shares of Mechel OAO (MTL) are up .02 to 2.04 today. MTL is near the middle of the 52 week range.

Today paper traded 49000 MTL Jul 2/3 call spreads at .15. The ADV is 3375 contracts.? The OI is 23497 on the 2.5s and 50837 on the 3s.

The volume went up in two giant blocks marked spread.? With the large OI the trader looked like they were rolling down short calls to the 2 strike.? The OI should close on the 3s and rise on the 2?s tomorrow.? Most likely this is a buy write that is rolling down.

30-day implied volatility is 75%.?? 10-day implied volatility is 59%.? 30 day implied volatility is trading above the 10 Day Historical volatility.

Mechel OAO is a Russia-based integrated mining and steel company.