One investor is lowering the bar in AngloGold Ashanti, which has been dead money for the last two years.
optionMONSTER's monitoring programs detected the sale of 4,394 April 48 calls for $1.175 and the purchase of an equal number of January 55 calls for $0.10. Volume was below open interest in the Januarys but not the Aprils, so it appears that an existing short position was rolled.
The investor probably owns shares in the South African miner and has been using the options as part of a covered call strategy. The interesting thing about the trade is that it is being adjusted to a lower strike, which indicates a less positive view of the stock.
In return for lowering the exit price by $7, the trader collected an immediate payment of $1.075. He or she also agreed to remain in the position for an additional three months. (See our Education section)
AU is down 1.03 percent to $42.16 in afternoon trading and has lost 12 percent of its value so far this month.
Overall option volume is 12 times greater than average so far in today's session.
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