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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV