Kinross Gold bounced from its lowest price since late 2008, and
the bulls are stepping in.
optionMONSTER's Heat Seeker tracking system detected a surge of
activity in the January 12.50 calls, which traded more than 49,000
times against previous open interest of just 8,652 contracts. They
initially traded for $0.99 but climbed to $1.36 by the end of the
day as the mining stock pushed higher.
KGC ended the session up 5.73 percent to $13.10, but it has lost
more than one-quarter of its value in the last three months. Based
, investors are looking for a rebound by early in the year.
contracts, their positions will more closely track movement in the
underlying stock. The strategy is more costly than using
calls but increases the chance of making some profit from even a
small bounce. (See our
Overall option volume in KGC was 14 times greater than average in
the session, with calls outnumbering puts by 7 to 1 in a further
reflection of the day's bullish sentiment. Those puts that did
trade were mostly sold, which also reflects a belief that the
shares are expected to hold their ground or rebound.
(A version of this post appeared on
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