Yamana Gold has been pummeled for months along with the rest of the mining sector, and one trader is looking for another leg lower.
A trader sold 4,291 July 16 calls for the bid price of $0.58 in volume that was well above previous open interest of 1,428 and therefore a new position, according to optionMONSTER systems. Seconds later, he or she bought 4,291 July 19 calls for the ask price of $0.17 against open interest of 6,387, so that could be an opening or a closing transaction.
The trade could be rolling a short-call position lower, which would likely have been done against long stock in a covered call strategy. Or, if both sides of the trade are opening positions, this could be credit spread . In either case, the trader doesn't see AUY above $16 by the time of the July expiration. (See our Education section)
AUY is down 2.9 percent to trade at $14.35 this morning, its lowest level since July. The Toronto-based miner has been trending down from above $20 in the last four months and was above $16 just a month ago.
More than 17,000 AUY options have traded so far, almost 3 times its daily average.
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