Barrick Gold Corporation (USA) (ABX) Options Bulls Eye Higher Highs

Barrick Gold Corporation (USA) (NYSE:ABX) hit a new annual high today

Apr 29, 2016 at 12:18 PM
facebook X logo linkedin

Gold stocks are getting a boost today, as a retreating U.S. dollar buoys gold futures. Barrick Gold Corporation (USA) (NYSE:ABX), for instance, has surged 6.5% to $18.69 -- after earlier hitting a new annual high of $18.79 -- but options traders think there's even more upside to come.

Taking a quick step back, call options are trading at five times the average intraday pace, and four times the number of put options. What's more, a total of 57,452 calls have traded so far -- in the 99th annual percentile.

Most active is the ABX June 22 call, where 10,962 contracts have changed hands. It seems safe to assume new positions are being purchased here -- a theory echoed by Trade-Alert -- as call buyers bet on a move north of $22 by the close on Friday, June 17, when the back-month options expire.

From a broader sentiment perspective, today's call-skewed session marks a sharp contrast to what's been seen in ABX's options pits in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.24 ranks just 4 percentage points from a 52-week peak.

Echoing this is ABX's Schaeffer's put/call open interest ratio (SOIR) of 0.95 -- in the 84th percentile of its annual range. In other words, short-term speculators are more put-skewed than usual toward ABX.

Technically, though, ABX has done little to warrant such skepticism. Including today's surge, the stock has rallied an impressive 153% year-to-date. As such, it's possible that some of the recent put buying could be a result of shareholders protecting paper profits. However, a continued shift in sentiment in the options pits could help propel Barrick Gold Corporation (USA) (NYSE:ABX) to even higher highs.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.


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