U.S. Steel Stock Surges on Approved Nippon Steel Merger

President Trump approved the $14.9 billion merger between United States Steel Corp and Japan’s Nippon Steel via executive order, which includes a national security agreement granting the U.S. government a "golden share" ensuring 51% American ownership and presidential "total control." Following the announcement, U.S. Steel's stock price surged 5.1% to $54.84, earlier hitting a 14-year high, while options volume doubled the intraday average, with the June 55 call being the most popular.

Analysis

President Donald Trump's approval of the $14.9 billion merger between United States Steel Corp (NYSE:X) and Japan’s Nippon Steel via executive order has provided a significant catalyst for U.S. Steel's stock. The deal incorporates a national security agreement granting the U.S. government a "golden share," with President Trump stating Americans will retain 51% ownership and the U.S. president will have "total control," though specific details on this control mechanism were not provided. In response to the approval, U.S. Steel's stock surged 5.1% to $54.84, earlier touching a 14-year high of $54.91. This positive momentum builds on a strong year-to-date performance, with the stock up 61.4% in 2025, and follows a notable 21.2% bull gap in late May. Current technical support is observed near the 20-day moving average and the $52.50 level. Options market activity has intensified, with volume running at double the intraday average; 38,000 calls and 25,000 puts have been traded, with the June 55 call being the most active. Despite this bullish options flow on the day of the announcement, U.S. Steel's Schaeffer's put/call open interest ratio (SOIR) of 1.16, positioned in the 80th percentile of its annual range, indicates that short-term options traders had adopted a more bearish stance leading up to this event.

Key Decisions for Investors

• Investors should recognize the presidential approval as a key de-risking event for the merger, but closely monitor for forthcoming details regarding the 'total control' provision and the operational impact of the U.S. government's 'golden share' and 51% ownership requirement.
• While the stock has reacted positively to the news, hitting a 14-year high, the elevated SOIR suggests some underlying caution among short-term options traders; evaluate if the current price fully incorporates the merger approval or if volatility will persist as deal specifics emerge.
• Given the significant year-to-date appreciation and recent strong technical performance, investors might consider the sustainability of the rally and assess whether the current valuation adequately reflects both the merger synergies and the potential influence stemming from the national security agreement.