5MRD

Gold Mining Stock Looks Ready for Next Breakout

The security is still sitting near its record peak

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Subscribers to Schaeffer's Weekend Trader options recommendation service received this AEM commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Agnico Eagle Mines Ltd (NYSE:AEM) stock just broke above its November closing highs, as well as a downtrend line after a pullback and consolidation following all-time highs. The stock has also reclaimed its +100% year-to-date and year-over-year levels, making now a good time to bet on its next move higher.

 

Despite the stock still sitting near its record peak, short interest is up on the year and added 27.7% in the last two weeks. Furthermore, calls stacked above at the 190- and 200-strikes could act as magnets.
Our recommended February call has a leverage ratio of 6.46 and will double on a 16.04% rise in the underlying equity.
 

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