Strong Calls On Anglo Am; Puts On Savient

Anglo American

By Jon "DRJ" Najarian

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

The global mining company averaged 168 call contracts per day in the last month but saw about 14,000 calls in 15 minutes this morning, according to optionMONSTER's tracking systems. The intense action involving Anglo American, which accounts for 10% of the South African benchmark index, apparently followed a newsletter remarks about the company.

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.

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