Barrick Gold Takes Flight

1:00pm (EST)

On April 21st, I mentioned Barrick Gold (ABX, $34.85, up $1.21) and how the safety of gold could be coming into play. I profiled a couple of gold trades at the time but I didn’t want to chase them because they were having a good day. But it was a sign of things to come.

Barrick Gold was trading for $29 that day but really started to pick up steam last week. I had mentioned the May 30 calls (ABXEF, $4.70, up $1.00) as a possible play and they were going for $1.35 at the time. When the call options fell back to $1.00, it provided another cheap out-of-the-money trade. Even if you jumped in at $1.35, the trade has been a monster.

The May option chain expire this Friday so if you are in the trade, start shutting it down. You want to close these options before they expire, otherwise, since they are deep in-the-money they may get exercised.

Rick Rouse
Rick@OptionsMentoring.com

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