Mining stocks see options action

Stocks responded to a snapback in the labor market with a huge rally. Bond prices fell, sending yields only marginally higher, yet the broader tone appeased investors recently plagued by concerns for growth. Precious metals prices faced the wrath of a stronger dollar, which rallied on fears the Fed would move faster. The price of gold fell to its lowest level since the final day of 2013 breaking below $1,200 per ounce.

The table below ranks gold mining stocks according to heaviest option volume and you can see that by lunchtime in New York the most actively traded four stocks attracted above their respective 10-day average option activity. Barrick Gold Corp.(NYSE:ABX) for example has traded 49,000 options so far today and 12,000 above typical volume. Most gold mining companies have seen upwards of 3% shaved off their share prices. While broad stock market volatility is lower as stocks rally, only a handful of gold miners are experiencing weaker option implied volatility to end the week.

Table – Highest option volume gold miners as gold breaks $1200


About the Author

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school.