VALE – Vale S.A. – Shares of the world’s largest iron-ore producer are lower by 1.80% to $27.05 in late-afternoon trading, but optimistic options traders expecting rosier circumstances by next year looked ahead to the January 2011 contract to establish bullish stances on the stock. Perhaps optimism on Vale was inspired by Banco BTG Pactual SA’s upgrade of the firm to ‘buy’ from ‘neutral’ on sentiment iron-ore prices could double in the second quarter versus the fourth quarter. It looks like investors purchased roughly 7,000 calls at the January 2011 $40 strike for an average premium of $0.47 per contract. Call buyers make money if, by expiration, shares of the iron-ore producer are up 49.6% to exceed the average breakeven price of $40.47. Investors may also turn a profit even if shares do not exceed $40.47 because lesser rallies in Vale’s value per share may boost premium on the January 2011 $40 strike calls to a facilitate a profitable closing sale of the contracts ahead of expiration.