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Options: Barrick Gets Bullish, Centex On A Run

Friday, 6 Feb 2009 | 7:35 AM ET

Barrick Gold is seeing bullish options activity as the price of gold rose for the second straight day and stayed above $900.

Toronto-based ABX has joined a steady stream of mining companies that have been lighting up OptionMonster's tracking systems since the precious metal began its latest rally in mid-January. Traders are especially active in Barrick's March options, where a March 42.50-50 bullish call spread was bought yesterday for $1.50 on more than 6,000 contracts.

The price of ABX shares has risen along with gold itself, now trading more than 24 percent higher since beginning its latest run at the $31 level on Jan. 12. Barrick closed yesterday up 4 percent on the day to $38.57.

And this from Chris McKhann ...

Centex has been on a run since its earnings report after Tuesday's close and is seeing continued bullish action.

The Dallas homebuilder closed yesterday up 6 percent on the day to $9.74. The 52-week low was all the way down at $4.91 on Nov. 21, but CTX still has a long way to go before regaining its high of $27.72 set back in April.

OptionMonster's tracking systems show heavy call buying of the February 10 strikes. More than 11,000 of these contracts have traded against open interest of 4,559. They changed hands in various block sizes, some from institutional traders, for prices from $0.65 up to $0.85.

Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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  Price   Change %Change
ABX
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CTXS
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