Kinross Gold continues to bounce off yesterday's low, and at least one trader sees the miner staying above that level in coming months.
KGC is up 4.1 percent to $8.01 after hitting a low of $7.11 yesterday morning following its earnings report, a level that goes back to 2008 and 2005. Shares are still below Tuesday's open and have been trending lower since September, when they traded above $18.
A trader sold 6,000 August 7 puts for the bid price of $0.33, according to optionMONSTER's systems. The volume was more than 4 times the previous open interest, indicating that a new position.
This put selling is a bet that KGC will remain above $7 through expiration. The delta of the options suggests that the probability of that happening is 74 percent. The trader is also showing the willingness to buy the stock if it is below that strike price. (See our Education section)
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People get into option trading for a number of reasons, but there are three primary motivations: to increase income, to...
