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Traders are betting that the Market Vectors Gold Miners Fund will hold current levels in coming weeks.
optionMONSTER's Heat Seeker system shows that about 25,000 November 14 puts were sold for $0.33 to $0.36 early this morning. This represents new positions, as open interest in the strike was only 1,631 contracts before the session began.
The traders collect the premium from the option sales and are looking for GDX to stay above $14 through expiration in mid-November. If the stock falls below that strike price, these put sellers will be on the hook to buy shares at that level. Investors sometimes sell puts this way in hopes of picking up a stock at an effective discount to existing levels. (See our Coaching section)
GDX is down 2.46 percent to $14.26 today. The exchange-traded fund had rallied above $17 in mid-October as miners began to recover, but it fell hard with the price of gold after renewed speculation that the Federal Reserve will raise interest rates in December. The fund's top holdings are Goldcorp, Newmont Mining, and Barrick Gold.
Today's put selling has pushed total option volume in GDX to 49,500, nearly double its full-session average for the last month.
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Prb Energy Inc.
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CODE : PRB |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Prb Energy is a and oil development stage company based in United states of america. Prb Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 214.4 millions as of today (€ 188.5 millions). Its stock quote reached its lowest recent point on April 25, 2008 at US$ 0.10, and its highest recent level on June 28, 2019 at US$ 24.58. Prb Energy has 8 722 000 shares outstanding. |