Calls Active as Allied Nevada Breaks Out (ANV)

Shares of Allied Nevada Gold Corp.

are higher on the session by 5.39%, currently trading at $23.86. The stock has been moving higher over the past five weeks and broke out to new highs today; the $22.50 level was historical resistance and thus breaking above that level signals continued bullish price action to come. Options traders are flocking to the calls today as well. The October $25.00 call was purchased 11,705 times, 60% on the offer, throughout the session, pumping implied volatility up by over 13%. Call volume is running at over 17x the daily average. Note that the company recently shunned a joint venture with Newmont Mining

in its Nevada assets, presumably because they realized they have a bigger find than once thought. Allied Nevada Gold Corp. is a gold producer, which operates the Hycroft Mine and has a large number of exploration claims in the State of Nevada. At May 15, 2009, Allied Nevada had proven and probable mineral reserves of 1.1 million ounces of gold and an aggregate land position of approximately 386 square miles (621 square kilometers). The company operates in three segments: Hycroft Mine, Exploration Properties, and other.