Traders see little upside in Molycorp

Chris McKhann (

Traders see little upside in rare-earth company Molycorp.

optionMONSTER's tracking systems show that a block of 8,000 of the September12 2.50 calls were sold for $0.22. That volume eclipsed the previous open interest of just 12 contracts at that strike, so it was a new opening position.

The trade was probably done against long shares as a covered call . (See our Education section). That is bullish up to, but not beyond, the $2.50 level.

MCP fell 4.89 percent to $2.23 in morning trading, reversing some of yesterday's post-earnings move. It touched a 52-week low of $1.61 a month ago, and is down from above $5 in late April.

Total option volume is twice the daily average so far in the session.

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