Novagold Resources Inc (NG) $9.35 +5.65%
Novagold (NG) adds 50 cents to $9.35 and one strategist sells 57,450 Jan 7.5 calls on the Vancouver-based miner at $2.25 to buy 73,000 Mar 9 calls for $1.75. It might roll a position in Jan 7.5 calls opened on 9/26 when more than 50,000 traded. The biggest trade at that time was a 5000-lot at the 87 cent asking price. Shares have rallied 28.4 percent since that time and the position is being rolled to near-the-money Mar 9s.
Category: All Stocks, Basic Resources, Mid Cap Stocks
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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.
What is that, a $7 million profit on the Jan 7.5s. ha? That’s nuts. Paying $12.8 million for at-the-money calls on a gold miner is even more nuts. But it’s tempting to buy a few here!!! Crazy.