Precious metals have been regaining their luster, and one big
investor apparently believes that they'll remain in the spotlight.
optionMONSTER's tracking systems detected large trades in Iamgold,
Pan American Silver, and Newmont Mining. All three involved the
purchase of calls expiring in January 2014 combined with large
stock sales. The overall strategy rendered investors
on the share price, positioning them to profit solely from an
The first trade appeared in IAG shortly after the open, with
575,000 shares sold and 25,000 of the 30 calls bought for $0.95.
Minutes later, a block of 50,000 PAAS contracts priced at the 50
strike for $0.60, followed minutes later by the sale of 650,000
Implied volatility has been climbing in both names as investors
return to the industry after more than a year of lackluster
performance. The best way to take advantage of that move is in
options because they have a
. This makes them less sensitive to changes in stock price and more
sensitive to the market's expectations of future moves--whether up
or down. (See our
The last of the three big trades appeared in NEM shortly after
noon. This time, 14,500 of the 65 calls crossed our systems for
$4.90. Less than one minute later, a block of 580,000 shares was
Volume in each of the three contracts was more than 15 times
greater than average in the session. All three of the stocks are up
by more than 20 percent in the last month.
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