Thompson Creek has inflicted a world of hurt on one investor,
but the trader is taking another chance.
optionMONSTER's tracking systems detected the sale of about 15,000
September 7 puts on the Canadian mining company for $0.75. Some
13,000 March 8 puts were bought at the same time for about $0.82,
but volume was below open interest in that strike.
It appears that the trader had previously sold the March puts to
earn income, hoping that the stock would hold its ground. But the
stock collapsed, and now he or she is adjusting the position to
give it time to rebound.
TC sold off hard on Tuesday when it reported a big drop in earnings
and revenue after production costs soared and ore quality declined.
The company's primary mineral is molybdenum, a so-called rare-earth
element used in a broad array of electronics, including cellphones.
Shares declined an additional 1.09 percent to $7.28 yesterday. TC
is now back to where it peaked several times in late 2011, which
could lead some chart watchers to anticipate that it will now find
support. If they're right, those September 7 puts will expire
worthless and the trade will have
. (See our
Overall option volume was 44 times greater than average in the
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.