Today over 30,000 IAG March 4 calls were purchased for .40 and .45 a contract
IAMGOLD Corp., trading 3.46 with an IV30 of 77.55 and an HV10 of 78.85, is seeing heavy call action today in March.?? This stock has an ADV of 2848 and an OI of 133,700, yet today has seeing over 30,000 March 4 calls purchased for .40 and .45 a contract.? The open interest on the strike is over 40,000 but, appears to have been opened yesterday when 40,000 of these calls were purchased.? Thus there now appears to be OI of over 70,000 on this strike.
This appears to be a customer that thinks IAG is going to rally between now and March.? The stock needs to make a move toward 4.00 by January for these to have a chance or make a strong move into the 1st months of next year.?? At expiration the trader needs a move above 4.45 for these to profitably exercise in the month.
This trade is aggressively bullish the underlying and volatility.