Mining income from Paramount Gold


One investor is using options to squeeze a few pennies out of Paramount Gold & Silver.

Our tracking systems detected the sale of 4,000 September 7.50 calls for $0.15 against open interest of just 10 contracts. The trade accounted for most of the activity in the Nevada-based small cap.

PZG fell 2.29 percent to $2.56 in morning trading. It more than doubled between late 2010 and early 2011, but then drifted lower. Shares have been basing out since last summer and are now attempting to rebound.

Today's calls were probably sold by an investor who owns shares in the precious-metals exploration company. The trade let him or her earn some income now , while leaving room for the stock to triple before they're forced to sell out. (See our Education section)

Overall option volume is 8 times greater than average so far today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing , Options

Referenced Stocks: PZG

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