Put sellers are coming back to Thompson Creek Metals.
optionMONSTER's monitoring systems detected a surge of volume in the June 7 contracts yesterday, with large blocks pricing for $1.07 and $1.08. Volume was more than 100 times open interest in the strike.
This put selling represents a belief that the molybdenum and copper producer will hold its ground around current levels or push higher into mid-2012. If that happens, the puts will expire worthless and the investor will keep the premium. Volatility has also been waning this month, which will also help the position. (See our Education section)
TC rose 0.59 percent to $6.86 yesterday. The stock has been attempting to base out since the summer after losing more than half its value in the first nine months of 2011.
There was similar activity last week , when investors sold more than 6,000 June 6 puts for $0.75 to $0.80. The interesting thing about yesterday's trading is that the contracts are in the money , which makes them slightly leveraged to upside in the shares.
Overall option volume in the name was 13 times greater than average.
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