Traders have been looking for gold miners to bounce, and now they're targeting Canadian producer Iamgold.
optionMONSTER's Heat Seeker monitoring program detected the purchase of about 5,600 May 8 calls against open interest of just 286 contracts. The earliest and largest blocks priced for $0.25, followed by more buys at $0.35.
Those calls lock in the price where they can buy shares, so they will make money if the shares continue to run higher. (See our Education Section .)
IAG rose 2.46 percent to $7.41 in early afternoon trading. It hit a 52-week low of $6.04 earlier in the month, and has lost more than half its value since October.
On Friday, Heat Seeker also showed bullish activity in Eldorado Gold, so traders are looking for value in one of the weakest groups since last summer.
Total option volume in IAG is slightly above average so far today, with calls outnumbering puts by about 9 to 1.
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