Market News

January 6, 2017  Fri 7:16 AM CT

Traders apparently believe that downside potential is limited in First Majestic Silver.

Our tracking programs detected the sale of 4,700 February 9 puts for $0.70 to $0.96 yesterday. These are clearly new positions, as open interest in the strike was only 162 contracts before the trades appeared.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

AG rose 10.16 percent to $9.22 yesterday. The silver miner is down 15 percent in the last month but has bounced 12.5 percent in the last week. The company's next quarterly results are expected to come out after the close on Feb. 23.

Overall option volume was 4 times greater than average in the name yesterday.

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