Keegan Resources (KGN) loses 13 cents to $3.28 and a Jun – Jul 2.5 calls spread trades on the Vancouver-based gold miner for 15 cents, 4072X on CBOE. It likely rolls a position opened on May 17 when Jun 2.5 calls were trading for 50 cents per contract and KGN was near $2.80. Shares are up 15 percent since that time and the June 2.5s are now more than 30 percent ITM with 7638 in open interest — which is the largest in the name. Rolling to July 2.5s, for 98 cents per contract, seems to express confidence that the run higher can continue over the next five weeks.
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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.