Barrick Gold Corporation (ABX) Options Bears Take Action

Speculators expect Barrick Gold Corporation (USA) (ABX) to resume its long-term downtrend

Digital Content Group
Apr 14, 2015 at 2:13 PM
facebook twitter linkedin


Puts are crossing at nearly twice the expected intraday clip in Barrick Gold Corporation's (USA) (NYSE:ABX) options pits. It appears traders are buying to open the in-the-money May 13 put, expecting the shares to move further below $13 through the close on Friday, May 15, when the soon-to-be front-month options expire.

Put buying has picked up recently in ABX's options pits. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.52 ranks higher than 84% of readings from the past year. Not only that, but the stock's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.96 -- ranking in the 90th annual percentile, revealing short-term speculators are more put-skewed than normal.

This skeptical view can also be seen on the Street, where 15 of 17 covering brokerage firms have "hold" or worse ratings on ABX. This likely has something to do with Barrick Gold Corporation's (NYSE:ABX) technical history. During the past 12 month, the shares have lost nearly 33%. At last check, however, ABX was trading at $12.49, a 1% intraday gain.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners