Furious Buying Seen in Silver Standard
The bullish option action started early in Silver Standard Resources and didn't let up all day.
The December 20 calls saw huge buying right out of the gate, with some large blocks going for $1.25 to $1.40 in the first 10 minutes of trading, according to OptionMonster's real-time tracking systems. More than 32,000 contracts changed hands against previous positioning of just 390 by the end of the day, and premiums climbed to $2.05 at their midday peak.
Silver Standard's stock rallied 4.93 percent to $18.94 Wednesday. The silver miner operates properties in Argentina, Canada, Mexico, Peru, and Chile, as well as the U.S.
Owning callsgive investors the right to buy the stock at $20, so they're highly leveraged to the upside. For example, if the shares climb 20 percent from yesterday's close, the calls should double in value.
Almost 40,000 calls traded overall in the name versus barely 2,000 puts. Total volume was 31 times greater than average.
—Najarian owns SSRI calls.
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