Molycorp is a highly volatile stock, and traders are looking for a quick rally.
The weekly options expiring Friday perked up yesterday (Tuesday), with buying in the 55, 57.50, and 60 contracts, according to 's real-time tracking systems.
The 60s were the most active, seeing almost 3,000 trade for premiums from $0.04 to $0.08. The 57.50s mostly fetched $0.52 to $0.75, while the July 55 callssaw huge price swings as the mining stock ran higher.
MCP started rallying shortly after the calls changed hands and finished the session up 7.72 percent to $55.13. (See ticker for today's quotes.) The company, which produces and sells rare-earth oxides, got a shot in the arm recently when J.P. Morgan said Chinese quotas should keep the market tight and prices high.
There are only three days for the weekly contracts bought yesterday to perform, but Molycorp is the kind of stock that can really move: It was over $61 at the end of June and down to $51 on Monday before starting to bounce.
Call volume was more than triple the turnover in the puts. Overall option activity in the name was more than 4 times average yesterday.
Pete Najarian owns MCP calls.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of .