Options Trading News

January 23, 2013  Wed 9:26 AM CT

Kinross Gold has been in a tight range for months, and option traders are looking for more of the same.

optionMONSTER systems show that just over 10,000 August 8 puts have traded against previous open interest of 1,103 contracts. The biggest block of 6,848 was sold for the bid price of $0.30.

The put selling is a bet that KGC will be above $8 through that August expiration. If the stock is below that strike price, traders will face the obligation to buy shares. (See our Education section)

KGC is down 2.13 percent to $9.66 this morning. The Toronto-based miner has been trading between $11 and $9 since the start of September.
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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.

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