Mid-day Flow Summary: General Sentiment, NEM, ABX & GG
Most averages remain near unchanged at midday and the option volume is in line with recent levels. Nearing noon, a total of 2.1 million calls have traded versus 1.7 million puts for a somewhat bullish bias.
Gold Stocks (NEM, ABX, GG)
We are seeing elevated activity in the Gold sector options today, with triple the recent volume levels. Consistent buyers of calls are dominating the flow. An aggressive buyer has appeared in Barrick Gold (ABX) Jan-08 35 calls, lifting more than 7,000 for prices from $3.10 to $3.80. The stock is trading up 7% to $35.70. Newmont (NEM) is also seeing upside call buyers, most notably in the Jan-08 45 calls. NEM stock is currently up nearly 5% to $44.28.
Goldcorp (GG) is also unusually active, with 22,000 contracts traded before noon, or nearly 4 times the normal pace for this stock. Traders in GG are focusing on the Sept 25 calls which were bought at prices from $.55 to recent levels near $1.20. Gold trading above $700/ounce is leading the sector surge.
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