Trader Makes a $200,000 Bearish Bet in Teck Resources Limited (TCK)

Teck Resources Limited (TCK) is an integrated mining company with operation in Canada. The stock is currently trading around $21.65 in a 52 week range of $19.98-$30.02. Shares of TCK have been underperforming the market this year with stock falling nearly 17% year to date. Options traders seem to think this trend will continue as orders hitting the tape today are decidedly bearish. Early in today’s trading session a trader bought 6,000 of the TCK May 20-18 put spreads for $0.33. This is a bearish trade that requires this trader to lay out nearly $200,000 in premium. This block also represents volume over 6 times the average daily option volume in TCK. With shares of TCK trading well below the Ichimoku Cloud and a downward sloping future cloud we believe that this bearish order flow in TCK can justify a short position.

Trade: Buying the TCK May 20-18 Put Spreads for $0.30
Risk: $30 per 1 lot
Reward: $70 per 1 lot
Breakeven: $19.70

James Ramelli
http://keeneonthemarket.com

Submit a Comment

Your email address will not be published.

TradeThirsty

Your ultimate source of knowledge about the markets.

Recent Posts

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy