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Posts tagged ‘MCP’

Rare Earth Miners Continue Rally!! Lynas Corp and General Molycorp Soaring!! Options?? By: Tim Bolger

A little over a week ago, I posted on Optionshoney https://optionshoney.wordpress.com/2012/01/25/rare-earth-miners-up-big-in-late-trade-options-active-on-molycorp-and-avalon-rare-metals-by-tim-bolger/my bullish view on a number of Rare Earth Miners that were my top picks for 2012 and I argued that they could trend much higher following the blow-out quarter of Apple earnings.  To reiterate, my favorite investment picks in the rare earth space are Avalon Rare Metals (AVL), General Molycorp (GMO), Molycorp (MCP), and Lynas Corp. (LYSDY.Pk).  Take a look at the ten day technical chart below courtesy of Fidelity Investments.  This move to the upside has meant big money for call options on GMO and AVL.  The $3 and $4 strike Call Options on AVL and GMO are rallying again today…The biggest move to the upside in the past days has been led by Australina Rare Earth Miner: Lynas Corp, which has soared over 25% in past ten days.

Ten day chart is courtesy of Fidelity Investments:

Chart

Rare Earth Miners Up Big in Late Trade!! Options Active on Molycorp and Avalon Rare Metals!! By: Tim Bolger

After a pullback the last few days, Rare earth miners are staging a late day rally.  Why is this happening? Several possibilities, including big Tech earnings by Apple. These rare earth minerals are vital for building technology products like the ipod, disk drives, Mp3 players etc.  Another very likely reason for the spike in shares is the Fed pledging this afternoon to keep interest rates at historic lows through late 2014…that is a formula that spells a weak U.S. dollar and rising metals prices to me…that all equals rapid inflation to me…Keep an eye on a few of my favorite stocks in the rare earth space, which include: Molycorp, Avalon Rare Metals, and Lynas Corp. Tickers MCP, AVL, and LYSDY.pk.  All of these stocks are up over 5.5% on big volume today. MCP is up over 7% and Lysdy.pk is spiking 10%…Show me the money honey!!!

 

Remember my previous post on buying the Call Options on AVL…that trade is still in full effect and I like the Call Options on Molycorp(MCP) as well. I would think about buying the MCP Mar 17, 2012 30 strike Call Options for 2.35 a contract, with a slight pullback in the shares of Molycorp.  I am also still a big fan of the AVL Mar 17, 2012 3 strike Call Options for .25 cents.  Rare Earth Miners have room to run much higher in my opinion. So, Stay tuned to Optionshoney.com for more news on the Rare earth miners and options plays!!

 

Chart Courtesy of Fidelity Investments:

Chart

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