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

Silvercorp Call-Buyers Look for a Rally

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Silvercorp Metals (SVM) has been churning, and now the bulls are looking for a rally over the next month.

OptionMonster's tracking systems show that the April 6 calls traded heavily in the silver miner on Friday as more than 3,000 changed hands for $1.30 and $1.35 against open interest of just 72 contracts. This means that new money was definitely being put to work on the long side.

The stock closed at $7.25, up 3.28%, so the calls were in the money. They lock in $6 as the entry price on the shares.

If Silvercorp rallies, these contracts will deliver some major leverage to the upside, but they can also lose value in a hurry if it falls. The April 7 calls also found a few buyers.

The company engages in the acquisition, exploration, development, and operation of silver mineral properties in China and Canada. It's been stuck between $6 and $10 since late August, and those call-buyers are betting that it's time for the stock to break out.

More than 8,700 options contracts traded on Friday versus its daily average of about 2,900. Calls outnumbered puts by 5 to 1.

Najarian has no positions in SVM.
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 $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports