Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 28, 2012  Fri 5:16 AM CT

HMY: SEE CHART GET CHAIN FIND STRATEGIES
Harmony Gold has been bouncing, and the bulls are looking for the miner to keep climbing.

optionMONSTER's Heat Seeker scanners showed the purchase of more than 4,000 May 10 calls for $0.40 yesterday. Volume was more than 17 times previous open interest at the strike, so new money was definitely being put to work.

These long calls lock in the price where investors can buy shares in the South African gold miner. The options can generate significant leverage in the event of a rally because of their cheapness relative to the stock, but they will expire worthless if the shares don't move. (See our Education section)

HMY rose 2.86 percent to $8.64 yesterday and is up 9 percent in the last month. It's been rebounding after forming a double bottom around $7.45 in November and December, its lowest level in about four years.

Total option volume was 12 times greater than average in the session, with calls outnumbering puts by a bullish 38-to-1 ratio.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER