Pan American Silver (PAAS) is rallying this morning and was recently up $1.25 to $25.05 after silver gained 71 cents to $31.72. Early options action in the silver miner is focused on April 26 calls, which are 3.8 percent out-of-the-money with 129 days of life remaining and also 129 contracts of open interest. 10,425 contracts changed hands so far. The flow includes a multi-exchange sweep of 1,358 contracts for $2.35 when the market was $2.30 to $2.35. Another sweep of 1,259 contracts traded for $2.50 when the market was $2.45 to $2.50. Looks like upside call buyers are driving the flow. Vancouver-based miners PAAS and Silver Standard were the subject of bullish flow last week as well (see 12/8 color on SSRI).
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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.