U.S. Markets closed
  • S&P 500

    4,128.80
    +31.63 (+0.77%)
     
  • Dow 30

    33,800.60
    +297.03 (+0.89%)
     
  • Nasdaq

    13,900.19
    +211.39 (+1.54%)
     
  • Russell 2000

    2,243.47
    +20.42 (+0.92%)
     
  • Crude Oil

    59.34
    -0.26 (-0.44%)
     
  • Gold

    1,744.10
    -14.10 (-0.80%)
     
  • Silver

    25.33
    -0.26 (-1.02%)
     
  • EUR/USD

    1.1905
    +0.0031 (+0.2619%)
     
  • 10-Yr Bond

    1.6660
    +0.0340 (+2.08%)
     
  • Vix

    16.69
    -0.47 (-2.74%)
     
  • GBP/USD

    1.3707
    -0.0031 (-0.2248%)
     
  • USD/JPY

    109.6300
    -0.2000 (-0.1821%)
     
  • BTC-USD

    59,735.52
    -1,080.55 (-1.78%)
     
  • CMC Crypto 200

    1,235.89
    +45.20 (+3.80%)
     
  • FTSE 100

    6,915.75
    +30.43 (+0.44%)
     
  • Nikkei 225

    29,768.06
    +37.26 (+0.13%)
     

Spread bets on Goldcorp rebound

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Goldcorp fell sharply on poor earnings recently, but at least one trader is positioning for a rebound.

optionMONSTER's Heat Seeker system detected the purchase of 1,500 December 14 mostly for $0.45 and the sale of 1,500 December 16 calls for $0.11. These are new positions, as volume was above open interest in both strikes.

This vertical spread cost a net $0.34 to open and is looking for GG to rally above $14 by expiration in mid-December. The sale of the higher-strike contracts reduces the cost of the long calls but limits potential gains, as the trader will be obligated to sell shares if they rise above $16. (See our Coaching section)

GG is up 1.17 percent to $12.94 in early trade but is down nearly 15 percent in the last week. The precious-metals miner had been trapped in a tight range mostly between $14.50 and $15.50 earlier this month but broke lower after reporting a surprise loss on Oct. 29.

Total option volume is below its full-session average, but overall calls outnumber puts by more than 8 to 1.

More From optionMONSTER