Gold Fields has been struggling, and one investor wants to put a
position out of its misery.
optionMONSTER's tracking programs detected the purchase of 24,578
January 14 calls for $0.03 and the sale of an equal number of April
13 calls for $0.35. Volume was below open interest in the January
options, indicating that an existing short position was closed and
moved from one contract to the other.
probably owns shares
in the South African gold miner, which has been trending lower
since April 2011. He or she would have previously sold the January
14s to earn income while holding the stock and yesterday adjusted
the trade to the lower strike.
The trader collected a credit of $0.32 in the process while
lowering by $1 the level at which the stock must be sold. In other
words, the investor doesn't expect a rally anytime soon. (See our
GFI fell 1.39 percent to $12.04 yesterday and is down 23 percent in
the last year. The stock faces potential resistance at or below the
$13 level, which may explain why the investor wants to be short
calls at that level.
Total option volume was 22 times greater than average in the
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