A trader is positioning for limited gains in Rio Tinto even as it pushes higher this afternoon.
RIO is up 3.13 percent to $47.18. The metals miner is in the middle of its recent range, having traded near $50 two weeks ago and bouncing off 2012 lows around $42 at the end of May.
The stock traded above $50 for the first five months of the year, but today’s option trading doesn’t see much upside in the coming months. The volume is topped by the action in the October 47.50 calls. Two blocks of 2,250 changed have hands, sold for $2.95 and then $2.90. The volume was more than 10 times the previous open interest.
— Option Monster