Tuesday, December 28, 2010

Options Traders Continue Molycorp (NYSE:MCP) Love

Options traders continue their recently started love affair with Molycorp (NYSE:MCP), apparently on the news China had ideas of cutting back on exporting various rare-earth minerals.

Interest in the company is on puts and calls, and trading today is already at 3 times the usual 3-month daily volume.

It's not that Molycorp is in China and would be affected in the way of not being able to export, because they're not, it's the idea there could be an extraordinary short-term shortage that is driving the interest in the company.

So far in 2010, the share price of the company has skyrocketed by over 240 percent, and it looks like it still has room to run, even though there is increasing caution on the sustainability of the upward share price movement.

Molycorp was trading at $48.90, down $0.54, or 1.09 percent, as of 1:48 PM EST.

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