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
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
Overall option volume is 8 times greater than average so far
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