Bullish Option Activity Alert: KGC
Bullish Option Activity Alert: KGC
Kinross Gold Corp. (KGC), a worldwide gold mining company, ranks #1 on our Most Active Option series so far today with more than 43,000 January 12.5 Calls crossing the tape. With nearly 70% of the activity taking place on the offers and implied vol popping more than 9%, it appears to be opening buyers looking for the shares to rally at least 6.5% over the next two months. This morningís activity has pushed KGCís total contract volume to 4.5 times the companyís daily average with 64k Calls trading versus 7k Puts.
Kinross Goldís shares traded at their lowest level in 3 years yesterday as investors seemed to be exiting shares in precious metal stocks with the ongoing concern over the euro-zone and, now the U.S., debt crisisí. The shares have managed to re coup 3.2% of its recent losses today due in part to traders buying the stock to hedge their Call option sales. The company is scheduled to participate in the Scotia Capital Precious Minerals Conference in Toronto on November 29th with Q4 earnings slated to be released in mid-February, after these contracts expire.
About Patrick (Rick) Mortimer
Patrick(Rick)Mortimer is the Director of Options Trading at Pipeline Trading Systems LLC. With over 25 years of options trading experience as a Broker/Market Maker on the Philadelphia Stock Exchange he now provides daily insight into today’s complicated world of equity options trading. His daily alerts and commentary are valued by institutional asset managers and hedge funds and he is often quoted by well known financial news providers such as Bloomberg, CNBC, and Reuters. Pipeline’s equity and options clients have found his analysis useful in providing option strategy’s to increase alpha for current equity holdings as well as forecasting directional stock movement based on the underlying option activity.
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