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How High Can Barrick Gold Go? Traders Say 'Higher'

Barrick Gold has found support at its 200-day moving average for most of the year, and call buyers are stepping in as the mining stock tests those levels.

OptionMonster's tracking systems lit up with activity in the August 42 strike, which saw 3,345 contracts trade yesterday — more than twice open interest. The trades were steady early in the session, with premiums climbing from $1.60 to $1.70.

The activity occurred one day after bulls snapped up the August 44 calls for $0.60 and $0.71, betting on a move in the near term.

Investors might be thinking back to April 28, when the company's earnings and revenue crushed forecasts on a surge in gold prices, and shares leaped accordingly. The next set of numbers comes out before the bell on July 29.

Barrick shares fell 0.19 percent to $41.73 yesterday. It needs to pop about 5 percent by expiration for the August 42 calls to turn a profit.

Call volume outpaced puts by more than 2 to 1, a bullish ratio.

Disclosures:

Pete Najarian does not hold significant numbers of shares of ABX.

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Options Trading School:

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Other Top Gold Miners:

AngloGold Ashanti

Freeport McMoRan Copper & Gold

Newmont Mining

Gold Fields

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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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