Does Hecla ride a silver break out, HL shorts get squeezed and calls-to-puts rally? OR, does Hecla breakdown, puts-to-calls spike and bad HL volatility spike? Place your bets. This Schaeffer's article gives potential reasons for the 2012 trade. Hecla is near a big time ceiling resistance level and so is Silver (see SLV chart). Hecla's call volume in 2009 forecasted higher levels when it was on the brink of bankruptcy. Hedge longs here. HL ISE Implied Volatility lost 11% since the trade (65.80 to 54.50 today). Hecla's stock is in a symmetrical triangle (near the break point) and is being squeezed between the 50 (above) and 200 (below) day moving average. HL hit a high of $7.50 in December 2009, it is currently trading at $5.53.
*Jefferies Initiated Hecla Mining with a BUY rating and $7 Target on June 11, 2010 (newratings)
Hecla Adjourns Portion of Its Annual Meeting until June 18, 2010 - (Hecla Mining News)
Hecla Mining Co. (Courtesy of FreeStockCharts.com)
21,451 $HL Jan 2.5 Calls at $3.2 (ISE)
See the most recent posts on Hecla Mining (HL).