Barrick Gold (ABX) loses $1.49 to $46.15 and is now down 17.5 percent from the 52-week high of $55.95 set intraday on Sep 8. Like other names in the sector, shares have been falling under the weight of lower gold prices. The yellow metal is down $36.6 to $1614 an ounce today and now $300 below the levels of more than $1900 seen earlier this month. Order flow in ABX is interesting today, as 36,000 calls and 9,275 puts traded on the miner so far. Top trades include an 8568 contract block of Jan 60 calls at 90 cents. The market is now 78 to 80 cents and 12,654 have changed hands. It might be closing activity, as the contract is 30 percent OTM and has 34,374 in open interest, which is the second largest position in ABX behind Jan 35 calls. Jan13 $70 calls and Jan13 $45 puts are the next most actives. Oct 42, 48 and 50 calls on Barrick are seeing some interest. April 48, Jan 40 and Jan13 47 calls are actively traded as well. Implied volatility is up 3 percent to 46, as players appear to be adjusting and closing position in the options on the stock after the volatile move lower over the past few weeks.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.