Saturday, November 17, 2012

Barrick Draws Bullish Gold Bugs

Barrick Gold (ABX) followed the bullish trend in the precious metal Tuesday.

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OptionMonster's real-time systems detected volume of more than 16,000 January 62.50 calls, with the big blocks pricing for 21 cents. There was also buying in the December 52.50 calls for 69 cents to 75 cents and the January 55 calls for $1. Those calls lock in the price of Barrick shares for the buyers, which means that these options can move sharply if the stock rallies. If it doesn't move in the right direction, however, the contracts will expire worthless. The gold miner closed at $49.93 Tuesday, up 0.79%. Our systems also identified bullish activity in another mining company, New Gold(NGD), and in the SPDR Gold Shares (GLD) exchange-traded fund, which tracks the price of the metal. More than 39,000 Barrick contracts crossed our screens Tuesday, which is more than twice the daily average in that name. Barely 4,000 of those were puts, reflecting the day's bullish sentiment. Najarian has no positions in ABX.

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