Traders see top in Century Aluminium

Seeking Alpha reported that Century Aluminium continues its unbelievable run for 2009 and option traders are taking advantage by selling calls. As per report, in a clear demonstration of the devastation of the crisis a year ago, as well as the rebound, CENX is up 1,500% from the March low but remains 80% below the May 2008 high. Shares hit a new 52 week high traded just below that, closing at USD 16.46 on Christmas Eve, up more than 60% from the beginning of the month. Traders are selling the June 22.50 calls, more than 2,500 contracts, with the largest block of 1,700 selling for USD 1.10. This call selling is very likely against long shares as most traders aren’t willing to sell naked calls, especially in this type of volatile name. The covered call position is actually reasonably bullish, as the trade will take a maximum profit if shares are up at that USD 22.50 strike at that June expiration. (Sourced from seekingalpha.com)