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By Chris McKhann

Ivanhoe Mines is at a two-year high, and the option action is looking for it to continue running higher.

IVN Chart

The Canadian gold and copper mining company is up at $14.94, falling slightly from the open and trading just below the high of $15.19 set yesterday, the highest level since November 2007. IVN is up almost 50 percent since finding support at the beginning of November and more than 500 percent for 2009.

The average daily options volume is has been fewer than 3,000 contracts total in IVN, and despite the holiday slowness we see one block of 4,100 June 15 calls traded today. The calls were bought for $2.25 against open interest of 3,608 contracts.

This call buying is a bet that IVN will be above the all-time high for the stock set in July 2007. This is one way that traders have been trying to leverage the higher price of gold and other precious metals.

(Chart courtesy of tradeMONSTER)

Source: Why Traders Think Ivanhoe Will Shine