Buyers showed up early in New Gold yesterday and never let up.
The options were active right out of the gate, with the November 11 calls lighting up our screens. The first big blocks priced for $0.90 to $1.15, then $1.25 by later in the morning, according to OptionMonster's real-time tracking systems.
Those calls were highly leveraged to New Gold's share price, so the buyers definitely believe that some upside could be in the cards. The volume kept running throughout the day and ended above 54,000 contracts, more than 30 times the previous open interest.
The Canadian precious-metals miner held its 100-day moving average for most of the session but fell late and closed at $10.70, down 5.31 percent on the day.
Total option volume in the name was 25 times the daily average, and calls outnumbered puts by more than 8 to 1.
—Najarian owns NGD shares.
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