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. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.