Will Pan American Silver keep running?
Traders are looking the bullish momentum to continue for Pan American Silver through early next year.
optionMONSTER's monitoring program shows that more than 3,100 January 35 calls were purchased mostly for $0.20 on Friday. This is fresh buying, as there was no open interest at the strike before the trades.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
PAAS rose 4.5 percent to $18.36 on Friday and is up 54 percent in the last three months. The silver miner's next quarterly report is scheduled for after the close on Aug. 11.
Overall option volume in the name was twice its daily average on Friday. Calls outnumbered puts by a bullish 8-to-1 ratio.
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