VALE Short Put — 2026-11-20

VALE (VALE S.A. American Depositary Shares Each Representing one common share) shows bullish unusual options activity: $76K of buyer-initiated unusual call flow (100% call-dominant) detected across near-term expirations, with a peak vol/OI ratio of 5.1x on the 11.5 call. We fade this by SELLING premium on the other side: the trade profits from time decay as long as VALE stays above $11 through expiration. IV rank is 65 (elevated) — rich enough that selling the naked short put collects a worthwhile credit for the risk. Sell the $11 put expiring 2026-11-20 (21 DTE) at mid $0.21 per share ($21 credit per contract). Breakeven at $10.79; net delta 0.31.

Underlying: VALE @ ~$11.42 | 2026-11-20 (21 DTE) | Net credit (entry): ~$21 per contract. Use limit orders at the mid or slightly better.

ENTRY: Sell the $11 put expiring 2026-11-20 (21 DTE) at a LIMIT of the mid or better — target credit $21. IV rank 65 is elevated — premium is rich, a good backdrop to SELL; any vol contraction adds to the win. Enter with the short delta ~0.20–0.30; skip if the fill would be below mid. Gamma: dealer gamma is roughly neutral — no pin edge either way; put wall (support) at $11; call wall (resistance) at $12.5. | TAKE PROFIT: Buy the put back to LOCK IN gains at ~50% of the $21 credit (close near $10 of remaining value); on a fast IV crush take 25% quickly and redeploy. Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near VALE's short strike(s) — currently 21 DTE, so plan the exit 0 day(s) out. Never hold a naked put to expiration for pin/assignment risk. | IF TESTED: When the short-put delta reaches ~0.30 or the loss hits ~$41 (≈2× credit), roll the $11 put DOWN and OUT ~7–14 days for a net credit; if you can't roll for a credit, CONVERT to a put credit spread by buying a lower long put to cap the tail, or take the stop. Treat a close below the $11 put wall as the hard trigger to act (the pin support has failed). Breakeven is $10.79 — below it you're in the red. Size small: a naked put risks assignment down to $1,100 minus the credit. Undefined-risk structure — keep size small and honor the stop; do not let a naked tested strike run without a defined plan. | MAXIMIZE: If VALE holds well above $11, let theta work; once ~50–75% of the credit is captured you can roll the SAME put UP toward the money in the next cycle to collect more premium, or simply bank the winner and redeploy the buying power.