| Traders mine for rally in New Gold | |
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(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
Precious metals rallied yesterday, and the bulls targeted miner New Gold. optionMONSTER's Heat Seeker system detected the purchase of 6,000 January 4 calls for $0.35 to $0.40. Volume eclipsed the strike's previous open interest of 1,299 contracts, an indication that new money was put to work.
These long calls lock in the price where shares can be bought in the Vancouver-based company. Their cheap cost helps manage risk and can result in significant leverage on a percentage basis if a rally occurs. (See our Education section)
NGD rose 3.12 percent to $3.30 yesterday. The stock has lost half its value since last summer and is trying to rebound from its lowest level since 2009. The mining company trades for less than book value as well, which could make some investors expect a rebound.
Total option volume in the name was 12 times greater than average in the session Overall calls outnumbered puts by 260 to 1, a reflection of the bullish sentiment.
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New Gold Inc.
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PRODUCER |
CODE : NGD |
ISIN : CA6445351068 |
CUSIP : 644535106 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
New Gold is a gold producing company based in Canada. New Gold produces gold, copper, lead, silver and zinc in Australia and in Mexico, develops copper, gold and silver in Brazil, in Canada and in Chile, and holds various exploration projects in Canada. Its main assets in production are PEAK MINES in Australia and CERRO SAN PEDRO, MESQUITE and CERRO SAN PEDRO in Mexico, its main assets in development are AMAPARI in Brazil, NEW AFTON in Canada and EL MORRO in Chile and its main exploration properties are AJAX - PYTHON, BUCK CLAIMS, 3TS, SIZZLER, CC PROPERTY, VO PROPERTY, TAK PROPERTY, MOUSE MOUNTAIN, G-SOUTH, CHUBBY BEAR, LIBERTY BELL, BOULEVARD, BOUVETTE, WIT YUKON, RAM, SLATE FALLS, PROSPECTOR MOUNTAIN, MAYO, DAVIDSON, BLACKWATER, BOULDER CREEK, CAPOOSE, NATIONAL, CORRAL CANYON and RUDE CREEK in Canada and RIO FIGUEROA in Chile. New Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 1.0 billions as of today (€ 973.2 millions). Its stock quote reached its highest recent level on January 07, 2011 at US$ 9.99, and its lowest recent point on March 20, 2020 at US$ 0.39. New Gold has 575 460 032 shares outstanding. |