Miners have followed the precious metals higher this week, but one trader apparently believes that further upside will be limited in Goldcorp.
A trader sold 9,525 January 40 calls for the bid price of $3.05 on a relatively wide bid/ask spread, according to optionMONSTER systems. Open interest in the strike was 6,641 before the trade appeared, indicating that this is new activity.
The calls could have been sold naked with an initial bearish bias. Alternatively, they could have been traded against long shares in a covered-call strategy , which would be bullish up to the strike price but not beyond. (See our Education section)
GG is down 0.77 percent $31.03 this morning. The Canadian miner touched a high of exactly $32 earlier in the session, its highest since April 10. GG was last at $40 in November.
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