Market News

February 7, 2012  Tue 2:46 AM CT

The Market Vector's Gold Miners Fund has been rallying off its recent lows and yesterday drew heavy activity in longer-term calls.

The GDX finished yesterday's session at $56.18, down 0.46 percent on the day. The exchange-traded fund has been rallying since hitting a 52-week low of $49.22 at the end of 2011. However, the recent gains have brought shares only back to where they were in mid-December.

Option volume was above average and led by action in the January 2013 80 calls, where a trader bought 15,000 contracts for the ask price of $1.08, according to optionMONSTER's Heat Seeker system. The previous open interest was 9,289, so this was a new opening position.

A minute later, the largest GDX stock print of the day traded as a block of 225,000 shares was sold for $56.10. That trade, if tied to the call purchase, would create an overall position that is neutral on the stock's direction and instead focused on changes in volatility.
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