Buenaventura draws nervous trades


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Investors are nervous about Peru's Minas Buenaventura.

optionMONSTER's Depth Charge tracking program detected the purchase of more than 5,000 February 38 puts for $1. Volume was more than 5 times open interest in the strike. Shares also dropped as the contracts priced, which confirms the bearish sentiment.

BVN fell 2.29 percent to $38.04 yesterday. The gold and silver miner has been drifting sideways since the start of last year along with others in the sector. It seems to be hitting resistance around its 200-day moving average, and some chart watchers may now be expecting a push to the downside.

The next earnings release hasn't been scheduled, but BVN issued fourth-quarter results on Feb. 24 last year and could report around that date again next month. That would fall after yesterday's puts expire.

Overall option volume was 16 times greater than average in the session, with puts outnumbering calls by more than 20 to 1, according to the Depth Charge.

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.



This article appears in: Investing , Options


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