By David Russell, reporter at OptionMonster
NEW YORK -- Canadian gold miner Iamgold (IAG) 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 90 cents 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.Iamgold rose 7.49% to $15.79 and is up about 50% 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 the name was 12 times greater than average on Friday, with calls outnumbering puts by 7 to 1. Russell has no positions in IAG.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV