| Stillwater trader keeping the faith | |
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Stillwater Mining surged yesterday, and one big investor is keeping the faith.
optionMONSTER's tracking programs detected the sale of 3,943 May 14 puts for $0.88. An equal number of April 14 puts was bought for $0.58, but volume was below previous open interest in that strike. This indicates that an existing short-put position was closed and rolled forward in time.
Selling puts generates income while obligating investors to buy shares if they fall below a certain level. Investors use the strategy when they like a stock but don't necessarily want to buy it right away. Yesterday's trader probably wrote puts when SWC was trading higher, expecting that it would hold $14. (See our Education section) Then after it broke down, he or she bought the contracts back and sold more at a later expiration. That not only prevented them from being required to purchase the shares, but it also brought in an additional $0.30 of premium. Now, if the stock now closes above the strike price by the third Friday in May, they'll walk away scot-free.
SWC rallied 4.44 percent to $13.87 yesterday, climbing along with other commodity stocks as the U.S. dollar weakened. The producer of platinum and palladium peaked above $19 in July and traded all the way down to $12 by November.
Total option volume was 19 times greater than average in the session.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : SWC |
ISIN : US86074Q1022 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Stillwater Mining is a copper and nickel producing company based in United states of america. Stillwater Mining produces copper, nickel, palladium, pgm and platinum in USA, and holds various exploration projects in Canada. Its main assets in production are EAST BOULDER MINE, STILLWATER MINE and EAST BOULDER in USA and its main exploration property is SIM LAKE in Canada. Stillwater Mining is listed in Germany and in United States of America. Its market capitalisation is 854.0 millions as of today (€ 784.0 millions). Its stock quote reached its lowest recent point on November 21, 2008 at 1.76, and its highest recent level on May 03, 2017 at 18.00. Stillwater Mining has 47 442 200 shares outstanding. |