OptionsHouse

Options Trading News

April 4, 2014  Fri 11:25 AM CT

EGO: SEE CHART GET CHAIN FIND STRATEGIES
At least one trader apparently believes that Eldorado Gold will hold today's bounce.

optionMONSTER systems detected the sale of 5,500 July 6 puts, with blocks of 2,195 and 1,762 going for $0.46. This is clearly a new position, as the volume is well above the strike's previous open interest of 1,248 contracts.

The put seller sees EGO holding above $6 through expiration in mid-July. If the stock falls below that strike price, the trader faces the obligation to buy shares at that level. (See our Education section)

EGO is up 4.41 percent to $6.03 in midday trading. The mining company traded up to $7.50 in mid-March but down at support around $5.60 through most of last week.

Total option volume in EGO has already surpassed 8,400 contracts, more than double its full-session average for the last month.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Investor deficiency in premium collection

Most investors have heard about selling options as a form of income generation. You hear it from brokers and financial advisors as a way to generate income without selling off pieces of your nest egg, dwindling through your retirement accounts, and then being stuck figuring out how to financially afford the rest of your life...

View more education articles »