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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 $12 by November.
Total option volume was 19 times greater than average in the session.
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Stillwater Mining Co
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PRODUCTEUR |
CODE : SWC |
ISIN : US86074Q1022 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Stillwater Mining est une société de production minière de cuivre et de nickel basée aux Etats-Unis D'Amerique. Stillwater Mining est productrice de cuivre, de nickel, de palladium, de pgm et de platine en USA, et détient divers projets d'exploration au Canada. Ses principaux projets en production sont EAST BOULDER MINE, STILLWATER MINE et EAST BOULDER en USA et son principal projet en exploration est SIM LAKE au Canada. Stillwater Mining est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 2,2 milliards US$ (2,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 21 novembre 2008 à 1,76 US$, et son plus haut niveau récent le 03 mai 2017 à 18,00 US$. Stillwater Mining possède 121 080 187 actions en circulation. |