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.
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