Teck Resources gets show of support

optionMONSTER

Teck Resources got a vote of confidence in two separate trades yesterday.

optionMONSTER's Heat Seeker system shows that 1,500 February 40 calls traded in a strong buying pattern in the final hour of yesterday's session, most of them going for $0.22. The volume was well above the strike's previous open interest of 955 contracts, indicating that this is new activity.

Earlier in the day our scanners also detected the sale of 2,000 March 36 puts in one print for $1.07. This is also a new position, as open interest in the strike was just 10 contracts before the trading began.

The two trades, which do not appear related, are both positive on the stock. The long calls , which lock in the price where shares can be purchased, are looking for TCK to rise above $40 by expiration in mid-February. The short puts , meanwhile, are betting that it will stay above $36 through expiration in mid-March. (See our Education section)

TCK rose 0.49 percent yesterday to $37.19. The Canadian mining company has been climbing steadily since holding support around $30 in early October but has tested resistance unsuccessfully at the $38 level several times this month.

Teck's total option volume yesterday was 4,175, more than double its daily average of 1,810 for the last month.

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