Is Royal Gold cooling off after big rally?
Royal Gold is up sharply in recent months, but one trader apparently believes that further gains will be limited.
optionMONSTER's monitoring systems detected the sale of 2,500 October 70 calls in one print for $1.60 yesterday. Volume was more than 110 times the open interest in the strike, showing that this is a new position.
Short calls generate income and fix the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that upside will be limited through expiration. (See our Education section)
RGLD fell 5.15 percent to $47.11 yesterday but is up 35 percent in the last three months. The Denver-based precious-metals miner is expected to announce quarterly results after the close on April 27.
Overall option volume was about average in RGLD yesterday.
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