A few months ago, the U.S. filed a complaint with the International Trade Commission against the "dumping" of Chinese steel pipe onto the U.S. market, driving down prices and crowding out U.S. producers. The commission voted in favor to the U.S. claim.

The case was prompted by pressure from the the United Steelworkers and seven U.S. steel producers. Leo Gerard, president of the United Steelworkers said: "China's government and exporters are being told we are fed up with their cheating on our fair trade laws and penalties for these transgressions are long overdue."

Cooper Tire & Rubber (NYSE: CTB) rallied to $15.60 on September 14 on news President Obama decided to side with the United Steelworkers and impose temporary tariffs on Chinese car tires. CTB October option implied volatility is at 66, November and January is at 68; below its 26-week average of 79, according to Track Data, suggesting decreasing price movement.

Goodyear Tire (NYSE: GT) closed at $17.78. GT overall option implied volatility of 56 is below a level of 190 from November 2008 and above its 52-week low of 54 from July, according to I Volatility, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

When it comes to private equity firms and unions, the mix is usually explosive. Private equity firms like to fire people, right?

Well, in the depressed global economy, things can get topsy-turvy.

Just take a recent piece in TheHill.com. The co-authors include Carlyle co-founder David M. Rubenstein and United Steelworkers' President Leo W. Gerard.

Yes, they are proposing a solution for the current economic turmoil. Basically, they think it's critical that the focus be on manufacturing.