Bearish spread hits Teck Resources

optionMONSTER

A bearish spread is positioning for a potential drop in Teck Resources.

optionMONSTER's Depth Charge system shows that a trader bought 3,300 November 22 puts for $0.83 and sold the same number of November 20 puts for $0.30. Volume was more than twice the previous open interest in each strike, so this is clearly new positioning.

The trader is spending $0.53 to open this bearish vertical spread , which is the maximum amount at risk. The maximum potential gain is $1.47, which would be realized if TCK is below $20 at expiration in mid-November. (See our Education section)

TCK is up 0.13 percent to $22.88 this morning, a day after posting its lowest close since June. Shares of the natural-resources company were last below $20 at their 52-week low in March.


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