Northern Dynasty Minerals is basing after a giant pullback,
and one investor is looking for a measured rebound.
optionMONSTER's tracking systems detected the sale of more than
9,800 November 15 calls for $0.45 and $0.40, and the sale of more
than 7,500 November 20 calls for $0.10. Shares fell almost
immediately, likely because the dealer who bought the calls
needed to hedge their resulting long position in the Canadian
NAK ended the session down 0.77 percent at $10.37 and has been
building support around its current level after peaking over $21
in February. The company co-owns Alaska's giant Pebble deposit
along with Anglo American, though it remains several quarters
away from generating revenue.
Yesterday's calls were probably sold by investors who own the
shares and are looking to receive some income while they wait for
a rally. In return for the cash now, they surrender the right to
upside above the strike prices. (See our Education section)
The trade pushed overall option volume in NAK to 30 times greater
I own NAK shares.
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