One investor is counting on limited upside in Silver Standard Resources.
optionMONSTER's monitoring programs detected the sale of about 3,000 December 40 calls on the mining stock for $0.70 against open interest of just 763 contracts. The trade obligates the investor to sell SSRI for $14, but including the premium that translates into $14.70.
He or she probably owns shares and is looking to earn income on their position. The move reflects a belief that upside in SSRI will be limited over the next six sessions. If the stock closes below $14 on expiration, they'll get to keep the shares and pocket the premium. (See our Education section)
SSRI ended yesterday's session unchanged at $14.36 yesterday but has lost more than half its value in the last three months.
More than 8,400 contracts traded in the name on Thursday's session, about triple the daily average.
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.
