Markets

Investor mines profits in Eldorado Gold

Eldorado Gold has pushed to an 11-month high, and one investor is taking profits.

optionMONSTER's tracking systems detected the sale of about 7,800 September 20 calls, most of which priced for $1. Volume was more than 14 times open interest in the strike.

The trade essentially reflects a belief that the Canadian gold miner will remain below $21 through expiration, which is about $1 below its all-time highs from last year. It was probably the work of an investor who owns the stock and sold the calls to earn income.

If EGO does break to new highs, he or she would be willing accept a $21 exit price. (See our Education section)

The stock is up 4.6 percent to $19.38 this afternoon, trading at its highest level since last September. It's up 21 percent in the last month, quadruple the performance of the broader gold-mining group, while the S&P 500 is down 16 percent in the same period.

The call selling pushed overall option volume in the name to 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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