Markets

How bull is digging into Teck Resources

Teck Resources is down to its recent lows, and one bull is looking for upside.

optionMONSTER's Heat Seeker monitoring program detected the purchase of about 1,950 November 43 calls for $1.35 to $1.38 and the sale of an equal number of November 30 puts for $1.07. Volume was more than 6 times open interest in both strikes.

The trade resulted in a cost of $0.28 and is similar to owning shares in the mining company, which produces copper, coal, and zinc. The main difference is that if TCK stays between $30 and $43 through Nov. 18, the position will expire worthless. It will also track the shares less closely as time passes . (See our Education section)

TCK is down 5.58 percent to $37.86 in midday trading. It peaked over $60 in January but has now retreated back to its same price area exactly one year ago. Some investors may consider it support and expect a rally from this level.

The trade pushed overall option volume to almost triple the daily 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 Nasdaq, Inc.

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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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