Is Teck Resources ready for a pullback?

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12.02-0.23(1.84%)

NYSE12:15 PM EDT

• Is Teck Resources ready for a pullback?
  optionMONSTER 5 hrs ago
• ETF’s with exposure to Teck Resources Ltd. : April 29, 2016
  Capital Cube q 2 days 20 hrs ago

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Teck Resources has seen it stock price more than triple since February, but traders are positioning for a decline in coming months.

optionMONSTER's monitoring system detected the purchase of about 8,400 June 12 puts for $1.45 to $1.55 on Friday morning. Then, in the afternoon, 12,000 August 10 puts were bought in one print for $1.32. Volume was far above open interest in both strikes, showing that this is fresh buying.

Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

TCK rose 9.77 percent to $12.25 on Friday. The mining company reported a surprise profit last Tuesday and is up is up 213 percent in the last three months.

Overall option volume was 5 times greater than average. Puts outnumbered calls by a narrow margin.