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.
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…
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