Why trader is selling calls in Goldcorp
A large trade apparently sees limited upside potential in Goldcorp.
optionMONSTER's monitoring systems detected the sale of 12,200 April 14 calls for $0.17 this morning. Volume was more than 9 times open interest at the strike, which indicates that new money was put to work.
Short calls generate income and fix the price where a stock must be sold. The strategy is usually done in conjunction with long shares in a covered-call position, reflecting a belief upside will be limited through expiration. (See our Coaching section)
GG is down 4.51 percent to $9.85 in early trade and has fallen 34 percent in the last three months. The Canada-based miner is scheduled to report earnings after the close on Feb. 25.
Overall option volume was about average in GG so far today.
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