Stillwater Mining hit a new 52-week high today, and traders are looking for even more gains.
More than 5,100 April 16 calls were purchased this morning mostly for $0.30 and $0.35, according to optionMONSTER’s Heat Seeker tracking system. Open interest in the strike was just 625 contracts before the session began, showing that this is fresh buying.
These long calls lock in the price where the stock can be bought through mid-April no matter how far it might climb. They could be sold earlier if premiums rise with continuing rallies before then, but the contracts will expire worthless if shares remain below $16.
— Option Monster