Traders have been bargain-hunting in the mining space, and yesterday they turned to Barrick Gold.
OptionMonster's tracking programs showed the heavy volume in the April 39 calls, with large blocks pricing for $0.63. More than 13,700 contracts traded by the end of the session, compared with previous open interest of just 3,832, so these are new positions.
Calls lock in the price where investors can buy shares. They can generate significant leverage to their underlying share price because options are much cheaper than stock. But if the shares don't move, these contracts can also expire worthless.