Bullion Bulls Turn to Iamgold

Jose Luis Pelaez | Iconica | Getty Images

Canadian gold miner Iamgold has been rocking higher, and bullish traders piled into the stock on Friday.

OptionMonster’s real-time tracking systems detected the purchase of almost 9,000 March 18 calls, most of which priced for $0.90 against open interest of just 15 contracts. There was also heavy volume in the January 12.50 and March 19 calls.

Calls lock in the purchase price of a stock, so they can generate some nice leverage in the event of a rally, but they will expire worthless if the shares don’t move.

Imagold shares rose 7.49 percent to $15.79 and is up about 50 percent since early August. The entire precious-metals space has been strong recently as the euro has climbed and as investors have correctly anticipated more money-easing policies by the Federal Reserve. Other commodities, including petroleum, have also benefited.

Overall option volume in Iamgold was 12 times greater than average on Friday, with calls outnumbering puts by 7 to 1.

—By CNBC Contributor David Russell.

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David Russell is a reporter and writer for OptionMonster. Russell has no positions in IAG.