| Calls look for Joy Global rebound | |
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Traders are betting that Joy Global will continue its recent rebound from multi-year lows.
optionMONSTER's Heat Seeker system found heavy buying in the November 20 calls yesterday, with more than 7,400 trading for $0.27 to $0.57. This is clearly new positioning, as open interest in the strike was only 56 contracts before the session began.
These long calls lock in the price where the stock can be purchased through mid-November no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $20. (See our Education section)
JOY rose 5.5 percent to $17.07 yesterday but is down 50 percent in the last three months. The stock has been rebounding since falling to $14.02 on Oct. 2, not far from the level where it bounced sharply in May 2009.
The mining-equipment maker has been pressured by the drop in metals and other commodities that has followed weakness in China. Its next quarterly results are expected to come out in December.
Total option volume in the name was just shy of 22,000 yesterday, 5 times its daily average for the last month. Overall calls outpaced puts by a bullish 4-to-1 ratio.
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Joy Global is a exploration company based in United states of america. Joy Global is listed in United States of America. Its market capitalisation is US$ 1.2 billions as of today (€ 1.2 billions). Its stock quote reached its lowest recent point on February 12, 2016 at US$ 10.26, and its highest recent level on April 05, 2017 at US$ 28.30. Joy Global has 43 700 000 shares outstanding. |