Kinross ended the session up 5.73 percent to $13.10, but it has lost more than one-quarter of its value in the last three months. Based on yesterday's call buying, investors are looking for a rebound by early in the year.
By using in-the-money contracts, their positions will more closely track movement in the underlying stock. The strategy is more costly than using out-of-the money calls, but increases the chance of making some profit from even a small bounce.
Overall option volume in the name was 14 times greater than average in the session, with calls outnumbering puts by 7-to-1 in a further reflection of the day's bullish sentiment. Those puts that did trade were mostly sold, which also reflects a belief that the shares are expected to hold their ground or rebound.
— Russell has no position in KGC.
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