Shares of Pan American Silver Corp. (PAAS) are trading higher on the session by 1.65%, at $20.90. The stock saw a huge push higher into the end of last week after the Federal Reserve sparked a rally in Gold and Silver futures. PAAS ended the week higher by 7.7%.
A very large block of LEAP calls traded on the name earlier in the session. The January 2014 $50 call traded 50,000 times, on the offer, for $0.60. Open interest on the strike is only 362 contracts, which indicates fresh positioning on the name.
The trade appears to be linked with a block of stock that traded shortly after for between $21.06-21.36. Like the action in IAG this morning, this appears to be a long volatility play. Current overall implied and historical volatility are registering 44% and 41%, respectively, up from 39% and 28% a few days ago.
Call volume is running at 10.7x normal volume with 60,000 calls traded today.
Pan American Silver Corp. is engaged in the operation and development of, and exploration for, silver producing properties and assets. Pan American’s principal product is silver, although gold, zinc, lead, and copper are also produced and sold.