SSR Mining Options Traders See Bullish Season Ahead

Seasonally, metal and mining stocks do well during the warmer months and SSR Mining Inc SSRM, a Vancouver-based precious metals producer, has rebounded 38% from its March 30 low of $13.68.

Inflation fears have spooked the major indices recently and smart money has been pulling out of the technology sector and moving into commodities.

SSR Mining options traders bet $301,325 on Wednesday there’s more upside ahead.

See Also: How to Buy Gold and Silver Right Now

The SSR Mining Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 10:38 a.m., a trader executed a call sweep, near the ask, of 830 SSR Mining options with a strike price of $20 expiring on June 18. The trade represented a $37,350 bullish bet for which the trader paid 45 cents per option contract.
• At 10:38 a.m., a trader executed a call sweep, near the ask, of 500 SSR Mining options with a strike price of $18 expiring on July 16. The trade represented an $80,000 bullish bet for which the trader paid $1.60 per option contract.
• At 10:46 a.m., Wednesday a trader executed a call sweep, near the ask, of 3345 SSR Mining options with a strike price of $20 expiring on June 18. The trade represented a $183,975 bullish bet for which the trader paid 55 cents per option contract.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

SSRM Price Action: Shares of SSR Mining were trading up 0.9% to $18.53 at publicaiton time.