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CNBC Stock Blog
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This blog post was written by OptionMonster's By Chris McKhann.
The price of Yamana Gold has followed in the general trend of the metal itself, but the stock [AUY
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One trader is using the options to try to ride that move up, purchasing 10,000 of the February 5 calls for $1.86 and selling the same number of January 5 calls for $1.67, according to OptionMonster's tracking systems.
Using the in-the-money options limits exposure to time decay, and this trader is paying only $0.19 for an additional 35 days for the stock to rally.
AUY is up 5 percent today, trading at $6.70 as it pushes back up toward recent highs. Gold futures are up half as much, at 834. The stock still appears to have considerable upside, as it traded as high as $19.93 back in March and above $10 in late September.
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More Global Gold Miners:
AngloGold Ashanti [AU
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Barrick Gold [ABX
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Newmont Mining [NEM
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Gold Fields [GFI
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.
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Data is a real-time snapshot *Data is delayed at least 15 minutes