Unusual Call Activity in Gold Fields
Gold Fields (NYSE: GFI) engages in the acquisition, exploration, development, and production of gold properties. With Monday's low of $11.75, the stock has lost as much as 30% of its value in 2012.
Tuesday's call activity suggests that at least one investor believes that shares are over sold. This investor may be in the process of accumulating October 12 bullish options. More than 15k contracts have already changed hands in that strike Tuesday and, with 70% of the trading on the offers, implied volatility is up over 2% to 37. There opening transactions may be looking for the shares to climb at least 6% by October expiration to reap any profits.
Total contract volume in GFI is nearly 8 times its daily average, with 18k calls trading versus 2k puts.
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