Market News

January 22, 2013  Tue 2:14 AM CT

One trader sees limited upside in Harmony Gold Mining.

A trader sold 6,500 May 9 calls for the bid price of $0.20 on Friday, according to optionMONSTER systems. Open interest in the strike was just 513 contracts before the trading began, so this is clearly a new position.

The calls weren't tied to any trading in the stock that we saw on Friday, though they could have been sold naked with an initial bearish bias. The options could also have been traded against an existing long position as a covered call strategy, which would be bullish up to that $9 level. (See our Education(See our Education section) section)

HMY shares finished Friday at $7.64, up 1.2 percent on the day. The South African miner finished the previous two days above the close of Dec. 5, which was its lowest since the end of 2008. Shares were up above $13 in late February.
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