New Gold sees more bullish activity

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New Gold saw bullish option trading for a second straight session on Friday.

Traders sold more than 9,500 October 11 calls in three large blocks for $0.65, $0.70, and $0.90, according to optionMONSTER's Heat Seeker tracking system. At about the same time, they bought roughly the same number of November 11 calls for $1 and $1.15.

Volume was below open interest in the October strike but above it in the November contracts, indicating the calls were being rolled forward. This means that investors were closing the earlier positions, which expired at the end of Friday's session, and opening new ones in November to get another month for their trades to work. NGD saw a similar call roll on Thursday.

NGD slipped 0.17 percent on Friday to close at $11.85. The gold miner's shares are up more than 50 percent since mid-May but have been range-bound between about $11.50 and $12.80 for more than a month.

The November long calls are looking for a modest gain by expiration in less than four weeks. Overall option volume in the name on Friday was 18 times its daily average for the last month, with only 352 puts trading in all strikes. (See our Education section)

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