Options Trading News

July 25, 2014  Fri 3:16 AM CT

Teck Resources popped after reporting earnings yesterday, and one trader is betting that shares will hold firm.

optionMONSTER's tracking systems detected the sale of 2,008 February 22 calls in one print for $1.28 yesterday. This is clearly a new position, as open interest in the strike was just 49 contracts before the trade appeared.

The put seller is looking for TCK to stay above $22 through expiration early next year. But the trader will also be on the hook to buy shares if they fall below that strike price. (See our Education section)

TCK rose 1.17 percent yesterday to close at $24.15. The copper, coal, and energy producer beat second-quarter earnings estimates while meeting revenue expectations.

Yesterday's put sale followed bullish call buying in the name twice this month, as reported on our InsideOptions Pro subscription service.
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The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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