{"id":63211,"date":"2025-02-11T02:00:26","date_gmt":"2025-02-11T07:00:26","guid":{"rendered":"https:\/\/www.tradestation.com\/insights\/?p=63211"},"modified":"2025-05-23T09:22:14","modified_gmt":"2025-05-23T14:22:14","slug":"options-alert-gold-fields-puts","status":"publish","type":"post","link":"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/","title":{"rendered":"Options Alert: Are Puts in Gold Fields Bearish?"},"content":{"rendered":"<p>Gold Fields has been surging along with bullion, and yesterday someone took a position with options.<\/p>\n<p>This large transaction occurred less than an hour into Monday&#8217;s session as the South African miner pushed above $19:<\/p>\n<ul>\n<li>8,000 March 18 puts traded for $0.55.<\/li>\n<li>8,000 March 17 puts traded for $0.30.<\/li>\n<li>Volume was more than 4 times open interest in both strikes, which indicates new positions were opened.<\/li>\n<\/ul>\n<p>There are two potential explanations behind the activity.<\/p>\n<p>One possibility is that an investor sold the March 18 puts and bought the March 17s. That would create <a href=\"https:\/\/www.tradestation.com\/insights\/2024\/07\/07\/options-trading-key-points-credit-spreads\/\">credit spread<\/a>, letting him or her collect $0.25. The resulting position would expire worthless if GFI stays above $18 through expiration.<\/p>\n<p>Alternately, the trader may have purchased the March 18 puts and sold the March 17s to create a bearish <a href=\"https:\/\/www.tradestation.com\/insights\/2024\/05\/08\/bullish-and-bearish-key-points-about-vertical-option-spreads\/\">vertical spread<\/a>. That would have cost $0.25. The resulting position could generate profit of 300 percent from the stock declining 14 percent by expiration.<\/p>\n<div id=\"attachment_63222\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-63222\" class=\"wp-image-63222 size-large\" src=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-1024x494.jpg\" alt=\"\" width=\"1024\" height=\"494\" srcset=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-1024x494.jpg 1024w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-300x145.jpg 300w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-768x370.jpg 768w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-1536x741.jpg 1536w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210-1080x521.jpg 1080w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/GFI_20250210.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-63222\" class=\"wp-caption-text\"><em>Gold Fields (GFI), daily chart, with select patterns and indicators.<\/em><\/p><\/div>\n<h2>Puts: Not Always Bearish<\/h2>\n<p><a href=\"https:\/\/www.tradestation.com\/insights\/2024\/05\/12\/the-basics-of-options\/\">Puts<\/a> tend to gain value when stocks decline because they fix the price where a security can be sold. However they can be combined in ways that aren&#8217;t always bearish.<\/p>\n<p>For example, selling a put credit spread reflects a belief downside is limited. The investor would be willing to accept an initial credit in return for agreeing to buy shares between $17 and $18.<\/p>\n<p>Alternately, the purchase of a vertical spread may indicate the investor wants to hedge a long position in the shares and keep holding them.<\/p>\n<p>GFI rose 4.7 percent to $19.56, its highest closing price since 2006. The stock has advanced about 50 percent since late December, following gains in the broader gold-mining industry. Management said in November it may divest smaller mines. On January 15, J.P. Morgan raised its price target from $17.10 to $18.80.<\/p>\n<p>Monday&#8217;s put spread pushed overall option volume in the company to 8 times greater than average in the last month, according to TradeStation data.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<p><em>Options trading is not suitable for all investors. Your TradeStation Securities\u2019 account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See\u00a0<a href=\"https:\/\/www.theocc.com\/Company-Information\/Documents-and-Archives\/Options-Disclosure-Document\">www.TradeStation.com\/DisclosureOptions<\/a>. Visit\u00a0<a href=\"http:\/\/www.tradestation.com\/Pricing\">www.TradeStation.com\/Pricing<\/a> for full details on the costs and fees associated with options.<\/em><\/p>\n<p><em>Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the\u00a0Margin Disclosure Statement at\u00a0<a href=\"https:\/\/uploads.tradestation.com\/uploads\/margin-disclosure-statement.pdf\">www.TradeStation.com\/DisclosureMargin<\/a>.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold Fields has been surging along with bullion, and yesterday someone took a position with options. This large transaction occurred less than an hour into Monday&#8217;s session as the South African miner pushed above $19: 8,000 March 18 puts traded for $0.55. 8,000 March 17 puts traded for $0.30. Volume was more than 4 times [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":63221,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[31,14],"tags":[1360],"class_list":["post-63211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-materials","category-options","tag-gfi","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Options Alert: Are Puts in Gold Fields Bearish? | Market Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Options Alert: Are Puts in Gold Fields Bearish? | Market Insights\" \/>\n<meta property=\"og:description\" content=\"Gold Fields has been surging along with bullion, and yesterday someone took a position with options. This large transaction occurred less than an hour into Monday&#8217;s session as the South African miner pushed above $19: 8,000 March 18 puts traded for $0.55. 8,000 March 17 puts traded for $0.30. Volume was more than 4 times [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Insights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradeStation\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-11T07:00:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-23T14:22:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/gold-mine-TS-BTT-44049741-1024x576.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"David Russell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:site\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Russell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/\",\"url\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/\",\"name\":\"Options Alert: Are Puts in Gold Fields Bearish? | Market Insights\",\"isPartOf\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/gold-mine-TS-BTT-44049741.jpg\",\"datePublished\":\"2025-02-11T07:00:26+00:00\",\"dateModified\":\"2025-05-23T14:22:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/#primaryimage\",\"url\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/gold-mine-TS-BTT-44049741.jpg\",\"contentUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/gold-mine-TS-BTT-44049741.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tradestation.com\/insights\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Options Alert: Are Puts in Gold Fields Bearish?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\",\"url\":\"https:\/\/www.tradestation.com\/insights\/\",\"name\":\"Market Insights\",\"description\":\"Fresh market commentary and actionable trade ideas.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tradestation.com\/insights\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\",\"name\":\"David Russell\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"caption\":\"David Russell\"},\"description\":\"David Russell is Global Head of Market Strategy at TradeStation. Drawing on more than two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories \u2013 especially those overlooked by other commentators. He\u2019s also a big fan of generating leverage with options to limit capital at risk.\",\"url\":\"https:\/\/www.tradestation.com\/insights\/author\/drussell\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Options Alert: Are Puts in Gold Fields Bearish? | Market Insights","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.tradestation.com\/insights\/2025\/02\/11\/options-alert-gold-fields-puts\/","og_locale":"en_US","og_type":"article","og_title":"Options Alert: Are Puts in Gold Fields Bearish? | Market Insights","og_description":"Gold Fields has been surging along with bullion, and yesterday someone took a position with options. 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