This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Minefinders Draws Bullish Options Action

By Pete Najarian, co-founder of OptionMonster

VANCOUVER, Canada ( OptionMonster) -- Minefinders (MFN) has been choppy to say the least recently, but Thursday the screens lit up with bullish option activity.

The May 13 calls were at the center of the action, trading in a strong buying pattern for 25 cents to 40 cents. Almost 4,700 of the calls traded against open interest of just 908 contracts at that strike, according to OptionMonster's real-time tracking systems.

Minefinders' stock climbed 6.45% to $10.57 Thursday after the company released strong production numbers. It bounced off the 200-day moving average and was briefly stuck at the 50-day average before breaking through that level as well.

The shares need to rally another 26% by expiration for those May 13 calls to turn a profit. The next earnings report is scheduled for Feb. 24.

All of the company's mines are in northern Mexico and offer exposure to several commodities. Silver was the big driver last quarter, with production surging 72% in the last quarter of 2010. Gold output dropped but was still ahead of forecasts.

Overall option volume in the name was 8 times greater than average. Calls outnumbered puts by 15:1.

Najarian has no positions in MFN.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%
TSLA $229.64 5.22%
YHOO $33.16 0.61%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports