Options Radar: Garmin Ltd., Mosaic Co, and Barrick Gold Corporation
Reviewing notable options activity on Garmin Ltd., Mosaic Co, and Barrick Gold Corporation (USA)
Reviewing notable options activity on Garmin Ltd., Mosaic Co, and Barrick Gold Corporation (USA)
Option traders have taken a shine to GPS maker Garmin Ltd. (NASDAQ:GRMN), fertilizer firm Mosaic Co (NYSE:MOS), and commodities concern Barrick Gold Corporation (USA) (NYSE:ABX). Here's a look at how speculators have been placing their bets on GRMN, MOS, and ABX.
- Garmin Ltd. (NASDAQ:GRMN) is 2.6% higher at $58.11, amid swirling takeover rumors. Against this backdrop, GRMN calls are trading at 16 times the average intraday pace, and have outnumbered puts by a margin of more than 20-to-1. Furthermore, the equity's 30-day at-the-money (ATM) implied volatility (IV) has popped 12.2% to 25.6%, reflecting the surging demand for short-term contracts. In fact, the soon-to-expire November 57.50 call is most active, with more than 2,600 contracts exchanged. It appears traders are buying the calls to open, hoping GRMN extends today's journey north of $57.50 through the end of the week, when front-month options expire.
- Mosaic Co (NYSE:MOS) is once again enjoying a sector-wide rally, as potash producers climb on a Russian rival's production halt. Like peer Potash Corp./Saskatchewan (USA) (NYSE:POT), MOS has felt the analyst love today. Susquehanna upped its opinion to "positive" from "neutral" and lifted its price target to $58 from $50, while Canaccord Genuity hiked its price target to $48 from $45 (but maintained a "hold" rating). For the second straight session, MOS calls are flying off the shelves, trading at 10 times the average intraday rate. The security's 30-day ATM IV is up 11.1% at 22.6%, with buy-to-open activity detected at the November 47.50 and January 2015 50-strike calls. At last check, MOS has added 2.4% to flirt with $47.88, bringing its week-to-date gain to 6%.
- Finally, Barrick Gold Corporation (USA) (NYSE:ABX) is down 4.2% at $12.74, after the firm said it's replacing Chief Financial Officer Ammar Al-Joundi -- the company's second major executive departure in as many months. In the options pits, ABX puts are trading at twice the typical intraday rate, and the stock's 30-day ATM IV has edged 5.4% higher to 45.8%. Upon closer inspection, it looks like traders are buying to open the November 12.50 put, expecting ABX to breach the strike by the end of the week, when the options expire.
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