Market News

October 13, 2016  Thu 5:16 AM CT

A trader is betting that upside potential will be limited in B2Gold.

optionMONSTER's monitoring programs show that 2,500 April 2.50 calls were sold for $0.40 and $0.45 at the same second yesterday. This is clearly a new position, as open interest in the strike was only 722 contracts before the trade occurred.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)

BTG rose 7.27 percent to $2.36 yesterday but is down 28 percent in the last three months. The precious-metals miner is expected to report earnings after the close on Nov. 2.

Overall option volume was 5 times greater than average in the name yesterday.

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