15,000 calls and 3,100 puts traded on Molycorp (MCP). Shares are down $1.17 to $32.89 and implied volatility in the options on the stock is up 5 percent to 105.5. Yet options order flow seems bullish. Weekly 35 calls, which expire after today, are the most actives. 3,500 traded (62 percent Ask) against 1,207 in open interest. Oct 30 calls are also seeing opening activity and trading predominantly (66%) at the offer. The top trades of the day are Oct 35 – 42.5 call spreads. 300 traded at $2.08 on ISE. Data indicate an investor bought the spread to roll a position down in strikes. Bullish trading in MCP comes amid speculation of an “potential Ackman stake” in the company (Briefing).
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.