Molycorp Options Surge As Speculators Find Alternatives (MCP)

Posted in General, Options 
December 27th, 2010

Molycorp, Inc. (NYSE: MCP) is new enough that many will not even think of it being an “option alert” stock.  Still, the exponential gainer in rare earths is seeing a large jump in its shares on a mine restart and it seeing considerable options volume as well as investors look for any way to “play the stock on the cheap.”  At 11:45 AM EST we have already seen close to 4,000 of the CALL options trade in just the JAN-2011 CALLS.  The speculative contracts are showing more volume than they are total open interest before today:

JAN11    Volume    OpInt
49.00    205    22
50.00    1,832    1,327
55.00    485    2,145

We have also seen close to 4,500 of the various PUT options trade as well.  At 11:57 AM EST we have shares up 7.9% at $48.94 and the new high hit today was $49.99.

JON C. OGG

Comments are closed

-->