It has been impossible to ignore the action in IAMGOLD Corp. (IAG) over the past few days: naked call buying, huge blocks of long vol, and now a mix of the two. IAG has been moving higher over the past two months, but recently it exploded higher above the 200-day moving average.
Currently, shares are higher on the session by 1.22%, trading at $15.78.
One hour ago, roughly 10,000 January 2014 $30 calls were purchased, on the offer, for $0.80. This block of calls appears to be linked with a block of 75k+ shares that traded at $14.931. This looks to be a continuation of the action seen yesterday, where an institutional trader initiated large long volatility play in the name.
Since the trade hit the tape, volume on the strike has jumped to over 40,000 contracts, much of it straight long calls. Volume now exceeds open interest, at 32,834 contracts. Call volume is running at 8x normal volume.
There is something brewing in the name? that is for sure.
IAMGOLD Corporation is a mining company. IAMGOLD?s interests include five operating gold mines, a niobium mine, a diamond royalty, and exploration and development projects located in Africa and the Americas.?