Traders seek bounce in Sibanye Gold
Someone thinks Sibanye Gold is due for a bounce.
OptionMonster's tracking program detected the purchase of 4,000 April 10 calls for $0.30 to $0.35. Volume was more than 17 times open interest at the strike, which indicates new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
SBGL fell 2.54 percent to $6.53 yesterday. The stock more than tripled in between January and August, but shed all its gains amid a broad selloff among gold miners.
Overall option volume was 11 times greater than average. Calls outnumbered puts by a bullish 23-to-1 ratio.
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