Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 28, 2012  Fri 2:14 AM CT

AEM: SEE CHART GET CHAIN FIND STRATEGIES
Agnico-Eagle Mines has fallen sharply with the price of gold in the last month, but one trader is counting on a floor beneath the stock.

optionMONSTER's tracking systems detected the sale of 1,500 April 45 puts in 5 minutes yesterday for an average price of $1.65. Open interest in the strike was just 71 contracts at the beginning of the day, indicating that this is a new position.

AEM rose 0.85 percent to $50.85 yesterday as the stock continues to face resistance at its 100-day moving average. The Toronto-based company, which produces gold, silver, and copper around the world, hit a 52-week high of $57.35 on Nov. 26 but has declined with the rest of the sector as precious metals have dropped.

Yesterday's put seller is looking for the stock to close above the $45 strike price at expiration in mid-April 2013. If the shares are below that level at that time, the trader faces the obligation to purchase shares at an effective price of $43.35 when the credit from the put sale is included. (See our Education section)
Share this article with your friends


Related Stories

AEM

What's behind call sale in Agnico Eagle

October 21, 2014

A large investor apparently sees limited upside potential for the Toronto-based precious-metals miner through early next year.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER