Trades see bottom in Thompson Creek

Thompson Creek Metals went up, then came down, and now investors apprently think that the bottom is in.

optionMONSTER's tracking systems detected the sale of about 9,700 September 10 puts for $0.85 against open interest of 7,250 contracts. The activity reflects a belief the thinly traded mining stock will hold its ground or push higher in the next three months.

TC ended the session down 1.02 percent to $9.74. It rallied from its current level to $15.50 between last September and January--only to roll over and surrender all those gains.

The Canadian company is in the process of ramping up production as it brings projects online. It announced a 25 percent increase in molybdenum output on May 8 and said its realized price per pound rose 20 percent from a year earlier. Gold and copper are also expected to begin flowing from its Mt. Milligan property by late 2013.

Yesterday's put selling in TC matches an increased bullishness toward metal and mining stocks, which have been among the strongest names in the market over the last two sessions. There was call buying in U.S. Steel and Yamana Gold yesterday. 

Overall option volume in TC was more than 10 times greater than average in the session.

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