Gold miners have struggled, but one big investor sees upside in Peruvian operator Minas Buenaventura.
optionMONSTER's Heat Seeker tracking system detected the purchase of 3,000 December 13 calls for $1.10 and the sale of an equal number of December 13 puts for $0.90. Volume surpassed the previous open interest at both strikes, which indicates that new positions were initiated.
Owning calls locks in the price where he or she can buy the stock, while selling puts forces them to get long if it's below the strike price. Combining the two strategies is aggressively bullish, with the potential of generating huge profits or losses. Every $0.20 spent by Friday's trader will control a single share, translating into leverage of more than 60 to 1. (See our Education sector)
BVN fell 2.21 percent to $12.84. The stock touched its lowest level in almost six years in June, rallied more than 40 percent by late August, and has been pulling back since. It's mostly tracked movements in the broader industry group.
Overall option volume in the name was 12 times greater than average in the session, with the big bullish trade accounting for more than two-thirds of the total.
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