Options Trading News

December 21, 2012  Fri 9:23 AM CT

Shares of Goldcorp are at four-month lows, but one large trader apparently believes that the slide is slowing for the gold miner.

A trader sold 5,000 July 30 puts for $1.65 against open interest of 3,268 this morning, according to optionMONSTER tracking systems. Around the same time, a block of 96,000 GG shares was sold for $35.50.

The combination of stock and options creates a delta-neutral position that looks for lower volatility going forward. The trade would be designed to take a maximum profit if shares remain range-bound and/or fall to the $30 level. (See our Education section)

GG has slipped 0.32 percent to $35.63 this morning. While the stock is off its worst prices of the day so far, it is trading at the lowest levels since the start of August.
Share this article with your friends

Related Stories


Spread bets on Goldcorp rebound

November 4, 2015

The precious-metals miner had been trapped in a tight range earlier this month but broke lower after reporting a surprise loss on Oct. 29.


Short-term calls target Goldcorp

November 2, 2015

The precious-metals miner dropped after reporting an unexpected quarterly loss last week, but traders are looking ofr a bounce by the end of this week.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »