It’s no secret that Rare Earths have been hot and heavily traded since all the chatter started a few months ago. For those still in the dark, according to the Encyclopedia Britannica (remember those things… before Wikipedia?), rare earths are “pure or mixed oxides… of metals… originally thought to be quite scarce; however, cerium, the most plentiful, is three times as abundant as the lead in the Earth’s crust”. Well, it appears that the infatuation for these stocks might be slowing down as shares take a breather from their highs.
MCP Molycorp - JP Morgan analyst Michael Gambardella raised his price target from $74 to $90 according to Barron’s blog (Link). Today, it looks like a mixed back of options as 46% of the 3,000+ April 70 calls traded bidside while 43% of the 3,000+ April 72.5 calls traded on the offer and some look like opening transactions. In MCP right now, the top positions are: April 50P (5.5K), April 55C (5.2K), April 60C (5.1K), April 55P (5.1K), April 50C (4.9K). Molycorp will report earnings on May 10th after the close.
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.