By Pete Najarian, co-founder of OptionMonster

TORONTO ( TheStreet) -- Seabridge Gold ( SA) usually doesn't see much option activity but Monday attracted a large trade that is looking for the miner's stock to pop.

OptionMonster's tracking systems detected a May 30/35 call spread, as a trader bought the 30s for about $2.45 and sold the 35s for $1 for a net cost of $1.45 to open the position. About 3,800 contracts changed hands in each strike.

The stock closed the session up 0.65% to $27.99, so the call spread is still out of the money. It will need to break back through its 50- and 200-day moving averages and toward its levels from last spring for the spread to turn a profit.

The trade was similar to one we saw back on April 1, when the May 25/30 call spread was bought for $1.45. Seabridge ripped higher almost immediately after that, and the position more than doubled in value.

Monday was a pretty bullish session for the name as well, as more than 9,900 calls traded at all strikes vs. 222 puts. That far outstrips its total daily average of fewer than 1,200 contracts.

Najarian owns SA shares.
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.

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