Mining Stock Flashing Bull Signal, Cheap Options

Alamos Gold options are affordably priced at the moment

Managing Editor
May 19, 2020 at 3:13 PM
facebook X logo linkedin

Last week, we checked in on a mining stock flashing a bullish signal. And while gold prices have lost some of their luster this week, there's another mining stock flashing a similar signal that's worth looking in to. Data from Schaeffer's Senior Quantitative Analyst Rocky White suggests Alamos Gold Inc (NYSE:AGI) could see more tailwinds in the months ahead.

Alamos Gold stock scored a three-year high of $8.76 back on April 30. This new peak comes amid historically low implied volatility (IV) -- a combination that has been bullish for the stock in the past. According to White's modeling, there was one other instance in the past five years when the stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th annual percentile or lower -- as is the case with AGI's current SVI of 72%, which sits in the 18th percentile of its 12-month range.

The data shows that one month after that signal, the mining stock was up 12%. From its current perch at $8.60, that means another move of similar magnitude would put the stock around $9.63, territory not seen since July 2016. AGI has more than doubled off its March 16 lows of $3.35, with pullbacks contained by its 20-day moving average.

Daily Stock Chart AGI

In the options pits, calls rule the roost amid limited absolute volume. In the last 10 days, 1,356 calls have been bought at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 40 puts.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI