Trader Draws a Line in the Sand on Allied Nevada (ANV)
Shares of Allied Nevada Gold Corp. (ANV) are trading lower on the session by 3.24%, at $38.57. The stock has been consolidating above the 50-day moving average for the past two months.
One trader is taking advantage of today’s downside pressure to sell naked puts on ANV. A short while ago the March 2013 $35.00 strike was sold 2,000 times, on the bid, for $2.50. Open interest on the strike is only 103 contracts, indicating new positioning.
This trade has pushed overall put volume to 10.4x normal volume.
30-day implied volatility is up 5.5% today to 43.86%; 10-day realized vol is registering 34.97%. At $2.50, the Mar13 $35 put was sold at 43% vol.
Allied Nevada Gold Corp. is a United States-based gold producer focused on mining, development, and exploration properties in the state of Nevada.
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