NovaGold has rebounded with the rest of its sector in recent weeks, and traders are looking for more gains in the Canadian miner.
optionMONSTER's Heat Seeker system detected the purchase of 5,490 July 6 calls traded in a strong buying pattern for premiums ranging from $0.85 to $1.05. The volume was well above the strike's open interest of 1,908 contracts at the beginning of the day, indicating that these are new positions.
NG gained 2.51 percent yesterday to close at $6.53, not far from its 100-day moving average. The stock has been working its way higher since hitting a 52-week low of $4.98 on May 9.
Total option volume in the name was 9 times its daily average. Calls outnumbered puts by 38 to 1, a reflection of the session's bullish bias.
Yesterday's long calls will turn a profit if NG rises back to the $7 level, which it last saw in mid-March. (See our Education section)
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