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.

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