Ivanhoe Mines is seeing astronomical options activity Friday as traders snap up calls in huge volume.
By midmorning alone more than 12,600 calls had changed hands, dwarfing the daily average of 350 contracts in January. That's 36 times the normal total of IVN calls for an entire month, traded in just the first two hours of the day!
The action started barely 15 minutes into the session this morning, when our OptionMonster's tracking systems detected blocks as large as 9,000 contracts traded at various strikes.
- Bookmark The CNBC Stock Blog
- More Options Tips from Jon Najarian
The Canadian mining company has lagged behind the price of gold, down 42 percent since September while the SPDR Gold Shares (GLD) exchange traded fund has risen 14.4 percent in the same period. IVN stock is up 2.25 percent to $4.54 in midday trading.
There is no law of physics dictating that miners must catch up to the price of gold and related equities that have risen in recent weeks. But as I have said repeatedly on OptionMonster and on CNBC, this relationship has a strong history of moving back together after diverging and may be why this buying showed up in IVN today.
Other Gold & Copper Miners:
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.