Eldorado Gold and Keegan Resources have been trying to climb, and one investor is remaining bullish on both.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,000 December KGN calls for $1.39 and the sale of an equal number of November 2.50 calls for $1.30. Volume was below open interest in the Novembers but not the Decembers, indicating that a long position was closed and rolled forward by one month at a cost of $0.09.
Less than 10 minutes later, a similar transaction appeared in EGO. This time, 4,150 November 13 calls were sold for $0.95 and an equal number of December 13 calls were bought for $1.34.
In both cases, the options were in the money and would have triggered purchases of the underlying stocks at the end of last week because it was expiration Friday. Rolling the positions had a small incremental cost. In return, investors have more time to enjoy the leverage provided by the options. (See our Education section for more on how calls and puts can be used to manage trades.)
KGN fell 1.54 percent to $3.83 while EGO rose 0.07 percent to $14.10. Option volume was more than 5 times greater than average in both names, with calls dominating activity in each.
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