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Bulls seek gold in Jaguar Mining

Jaguar Mining is ramping up production, and the bulls are taking notice.

optionMONSTER's Heat Seeker tracking system detected the purchase of more than 2,000 December 6 calls for $0.80 and $0.85 against open interest of 1,828 contracts. The activity came despite shares ending the session down 5.18 percent to $5.86.

JAG is based in New Hampshire but extracts gold from a mineral-rich section of Brazil called the Iron Quadrangle. It lost about two-thirds of its value between early 2010 and the beginning of August, but since then has bounced hard. It's now back above its 200-day moving average for the first time in more than a year.

Some of that rebound came after Aug. 10, when the company said cash from operating activities rose by more than 900 percent as gold output increased by about one third.

Overall options volume in JAG was 7 times greater than average yesterday, according to Heat Seeker.

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

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