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Options Traders Spooked by Mining Company

Global mining company Anglo American is seeing heavy call action Tuesday after announcing that it would cut 2009 spending programs by more than 50 percent.

The global mining company averaged 168 call contracts per day in the last month but saw about 14,000 calls in 15 minutes Tuesday morning, according to OptionMonster's tracking systems.

The intense action involving Anglo American, which accounts for 10 percent of the South African benchmark index, apparently followed a newsletter's remarks about the company.

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The call surge has also boosted AAUK's 10-day median volatility, which had fallen to 78 before today's trading. Today's action drove volatility up to 88 in 20 minutes.

AAUK shares were up some 3.6 percent to about $11.25 in midday trading. On Monday it was reported that Anglo American, which owns a 45 percent stake in the De Beers diamond company, is cutting its capital spending by more than half for 2009.

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Top Miners:

BHP Billiton

Rio Tinto

Freeport McMoRan

Newmont Mining

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.

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