Cleveland-Cliffs Cuts Q1 Cash Burn, Eyes Positive Cash Flow with 813,000 May Calls
Cleveland-Cliffs forecasted narrower Q1 losses with improving revenue and significantly reduced cash burn boosting chances of positive cash flow in Q1 2026. Options traders have loaded up on 813,000 May 10 calls against 292,711 puts as the stock eyes an 11.1% implied post‐earnings move.
1. Q1 Performance Outlook
Cleveland-Cliffs expects reduced Q1 losses alongside stronger year-over-year revenue and sharply lower cash burn, positioning the company for potential positive cash flow in Q1 2026.
2. Heavy Options Positioning
Recent trading saw 813,000 May 10 call contracts exchange hands versus 292,711 puts over two weeks, with implied volatility pricing in an 11.1% stock move around the April 20 earnings report.
3. Long-Term Valuation Metrics
Based on 2027 projections, the shares trade near 13x expected earnings and about 7x EBITDA, indicating a valuation discount that could support upside if operational improvements persist.