VGZ – Vista Gold Corp. – Bullish investors are mining for call options on the gold exploration and development company today, which suggests some traders expect Vista’s shares to head higher by the end of 2010. The Colorado-based company’s shares jumped 20.4% to touch an intraday high of $2.30. Investors in Vista Gold Corp. shares have had a fruitful month thus far. The stock is currently trading at a 76.9% premium over its July 28 low of $1.30 a share. Options strategists hoping to see the good times continue through to December expiration scooped up approximately 2,000 calls at the December $2.5 strike by shelling out an average premium of $0.32 per contract. Call buyers are well positioned to make money should Vista’s shares surge 22.6% over today’s high of $2.30 to surpass the average breakeven price of $2.82 by expiration day. The gold mining company’s shares last traded above $2.82 back on January 1, 2010. More than 3,230 contracts changed hands on Vista Gold by 1:25 pm ET, which is volume greater than the stock’s 3,029 lots of previously existing open interest.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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