Thousands Of Hecla Mining Calls Open ($2.50-5.00 - June, Sep '09, Jan '10)

There is large open interest in Hecla Mining's June and Sep $2.50 - $5.00 calls. Check out the $HL option chain via Yahoo Finance today. Something is up here, either someone is hedging a large short position, putting on vertical call spread or bulls are salivating to own this thing between $2.5-5. June has over 40,000 calls open vs 9,000 puts. September is also active with over 12,000 calls open vs. 1,000 puts. If you look way out to HL January 2010 options there are about 67,000 $2.50 calls open w/ last bid at $1.05. As always for better info on how these contracts were bought or sold to open hit up optionmonster.com, schaeffersresearch.com or investingwithoptions.com.

Hecla Mining June, Sep, Jan (2010) Option Chain (Yahoo Finance)

Hecla Mining Chart (Stockcharts.com)

H/T Schaeffers Research (Bulls Gold-digging with Hecla Mining Call Options)

Hecla beat Q1 earnings estimates on the top and bottom line and silver production surged 126% QoQ. They also paid off a $40 million bridge loan with an equity offering (credit markets froze up making this an issue). Also from the release, "In early February, Hecla also announced that it had reached an agreement with its banking syndicate to reschedule debt payments of $66.7 million due in 2009 to 2010 and 2011." Hecla also wants to buy some silver/mining assets. The stock is up 2 fold from earlier this year and closed at $3.17 today. If traders can't successfully move this over the 200d it could revisit the $2s but Hecla could be a long term play if they keep their business risk in check and gold/silver fundamentals improve. Below is the Q1 Earnings Release and presentation at European Growth Forum on 4/30/09.

Hecla Mining - Q1 Earnings Press Release

Hecla Mining - European Growth Forum


Articles of interest:

Hecla Mining reports first quarter results (IdahoBusiness)

Hecla mulls potential acquisitions in silver, gold (MiningWeekly)

Roger Wiegand: On the Cusp of a Significant Rise in Gold (Likes Hecla) (Gold Report)

Paulson Buys $GLD, $GDX. Laidi Long Gold/Oil Pair Trade (DistressedVolatility)