Buyers target Teck ahead of earnings
Teck Resources saw bullish option activity on Friday, the second time in less than a week.
optionMONSTER's Heat Seeker system shows that a block of 2,000 March 41 calls was bought for $0.32. This is clearly a new position, as open interest in the strike was just 66 contracts before the session began.
TCK rose 1.64 to $37.09 on Friday. The Canadian mining company has been climbing steadily since holding support around $30 in early October but has faced stubborn overhead resistance at the $38 level.
Friday's long calls , which lock in the purchase price for the stock, are looking TCK to gain more than 12 percent by mid-March. These options could be sold earlier at a profit if a rally drives up premiums before then, but the contracts will expire worthless if they remain below the $41 strike price.
The trade follows bullish activity in Teck detected by our scanners last Tuesday . The company will announce fourth-quarter results on Thursday before the market opens.
Total option volume in the name was 3,590 on Friday, more than 70 percent higher than its daily average of 2,083 in the last month. Calls outpaced puts by nearly 5 to 1.
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