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Gold/Mining/Energy : Big Dog's Boom Boom Room

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From: CommanderCricket	3/6/2012 8:41:43 AM
	1 Recommendation of 206160

Why call seller is targeting Cliffs Natural By Chris McKhann (chris.mckhann@optionmonster.com) \| optionMONSTER – 3 hours ago Cliffs Natural Resources saw its lowest close for 2012 yesterday, and one trader is betting on limited upside from here. CLF, which was above $77 less than a month ago, ended yesterday's session down 3.3 percent at $61.92. It the mining company's lowest close since Dec. 19. A trader sold 5,000 October 70 calls, with the biggest block of 3,829 going for the bid price of $5.10. The previous open interest was just 64 contracts, so this was a new opening position. The call selling was likely done against a long stock position because the shares were above $70 just two weeks ago. That would create a covered call position, which is a mildly bullish strategy that will take a maximum profit with the stock at or above the strike price, though the trader doesn't see much appreciation above that level.

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