Coeur d'Alene Mines has been range-bound since plunging with its last earnings report, but one trader apparently believes that the stock will hold support in coming months.
More than 3,600 March 22 puts traded in a strong selling pattern for $1.60 to $1.35 yesterday, according to optionMONSTER's tracking systems. The volume was 8 times higher than the strike's open interest at the beginning of the day, indicating new positions.
CDE rose 2.11 percent yesterday to close at $23.73, back at the high end of its recent range. The silver and gold miner gapped down from above $30 in after its last earnings report in early November and has been trading between $22 and $24 for the last month.
Yesterday's put sellers are betting that CDE will hold above that $22 support level through expiration in mid-March 2013. The traders will be obligated to buy the stock if it is below that level at that time, but at an effective price of around $20.50 once the credit from the put sale is included. (See our Education section)
The company announced yesterday that it will purchase the remaining interest in the Joaquin silver-gold project in Argentina from Mirasol Resources. Coeur d'Alene had already owned 51 percent of that operation.
Total volume in the name was more than triple its daily average in the last month.
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