Traders are looking for Market Vectors Junior Gold Miners Fund to rally by early next year.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,000 January 19 calls for $1.25 to $1.35 on Friday. Volume surpassed open interest of 1,659 contracts, showing that these are new positions.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Coaching section)
GDXJ rose 0.77 percent to $19.61 on Friday and is up 3 percent in the last month.
Overall option volume was 3 times greater than average. Calls outnumbered puts by a bullish 4-to-1 ratio.
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