×

Gold Miner Attracting Big Bull Interest

At least one institutional trader is betting that mining company Goldcorp will make large gains in the next three months.

Today's trade involves 5,000 calls bought at the October 45 strike price for $0.95, nearly double the open interest, according to OptionMonster's real-time tracking systems. Average call volume for the strike is just 55 contracts.

___________________________
CNBC/OptionMonster Trading School:

___________________________

GG stock, which is up 1.88 percent to $36.77 this morning, has largely tracked the price of gold as it has risen in the last week or so. It is the second precious-metals company to show heavy options activity on our systems today, along with Hecla Mining.

The stock was upgraded yesterday by BMO Capital Markets to "outperform." Goldcorp's shares would need to rise some 25 percent by options expiration in mid-October for the calls purchased today to be profitable.

Total calls at all strikes outnumber puts by more than 5 to 1, suggesting a generally bullish sentiment among traders.

___________________________
Other Top Gold Miners:

Freeport-McMoRan Copper & Gold

Newmont Mining

Barrick Gold

Gold Fields

___________________________

___________________________

Mike Yamamoto is an analyst and writer for OptionMonster.

___________________________

Disclaimer