Puts Active as Harmony Nears a 52-Week Low (HMY)
Shares of Harmony Gold Mining Company (HMY) are trading higher on the session by 2.16%, at $8.04. The stock has been trending lower over the past twelve months, pushing to new lows in early October.
With HMY once again looking ready to test the 52-week low (at $7.76), one trader is sweeping up out-of-the money puts on the name. A short while ago, the November $7.00 put was purchased 945 times, near the offer, for $0.18-0.19. Seconds later, the trader came back and bought 4,000 more puts, on the offer, for $0.15-0.20.
Total volume on the strike has pushed over 5,000 contracts, dwarfing the current open interest of 59; this is clearly new positioning. Overall put volume is now running at 14.75x normal volume.
Despite the relatively large purchase of premium today, near-term implied volatility is stable, up just 0.9% to 47.19%. 10-day historical vol is registering 38.04%.
Harmony Gold Mining Company Limited is engaged in underground and surface gold mining and related activities, including exploration, processing and smelting.
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