Options Players Hone in on Goldcorp (GG)

Posted on 01/04/2013 by Allen Bersch

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NEW YORK (AVAFIN) -- Goldcorp options set a new 90-day record for the number of call contracts that exchanged hands between the buyers and the sellers. Aggregate volume of puts was 6,579 and calls was 22,711 equating to a 0.29 put/call ratio.

Put/Call ratio can be regarded as a predictor of investment sentiment, indicating what experienced investors are doing in preparation for a move of an underlying equity. A high put/call ratio suggests that the investor sentiment is bearish and that investors are expecting the underlying stock price to decrease. On the other hand, a low put/call ratio implies that the investor sentiment is bullish and that investors are expecting the underlying stock price to increase. Thus, unusual volume provides reliable clues that the stock is expected to make a move.

GG is trading below the 50 day moving average and lower than the 200 day moving average. Shares of Goldcorp closed at $35.75, up $0.14 (+0.39%) in the last trading session. Today's volume of 6M shares is greater than the average volume of 4M shares.

Goldcorp is rapidly becoming a senior gold mining company with operations in Canada, the United States, Mexico, and Latin America. It produced around 2.5 million ounces, and has 60 million ounces in gold reserves. The company is undertaking several large gold mining projects, including the Penasquito mine in Mexico and the Pueblo Viejo mine in the Dominican Republic. Goldcorp is headquartered in Vancouver, Canada, and is listed on the New York and Toronto Stock Exchanges.


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