Couer Mining Inc. (CDE): Big Bearish Put Buyer

One trader believes that already beleaguered Couer Mining Inc. (CDE) is not done free falling yet. The trader just bought 8,122 January $8 puts, paying 85 cents for each contract.

Couer Mining Inc. (CDE) shares have been in steady decline the past year, as they bleed cash.  It traded as high as $16.00 this year and as low as $6.62.  Today CDE shares are down 35 cents at $8.23.

Couer Mining Inc. (CDE) is scheduled to report earnings on August 6 at 4pm.  We’re guessing this put buyer has had a little sneak peak at the numbers and it ain’t pretty.  CDE is a lightly traded, little followed company, so we find this unusual put buy even more unusual.  And when we find it really unusual we like to jump on the bandwagon with a copy cat trade.  So here it goes.

9 analysts have a consensus rating of HOLD and a hefty price target of $10.94.  So, this put buyer could be “guessing” that a downgrade and price target decrease is on the way shortly.

coure mining logo

The company is estimated to lose 32 cents for the quarter in a string of losses.  Things just don’t look good for Couer Mining Inc. (CDE), so we are liking this put buy a lot.

More unusual options plays to come…