Options Trader Load Barrick Gold Calls Amid Rotation From Growth To Value

Barrick Gold Corporation GOLD gapped up almost 2% Thursday morning and continued to run higher. Rotation from growth stocks into value stocks could be starting following the FOMC meeting and Jerome Powell’s press conference on Wednesday.

Although the Fed’s tone remained dovish, interest rates will eventually rise and the Fed will gradually scale back its quantitative easing which could be bullish for value stocks such as gold and silver. Following the Fed’s minutes, the SPDR Gold Trust ETF GLD popped 0.61% and on Thursday the ETF gapped up another 0.83%.

End of summer and early fall is also a seasonally good time for metal and mining stocks and on Tuesday Barrick Gold announced it had been secured four exploration licenses from the Egyptian government to explore gold and associated minerals in the country’s Eastern Desert. The Toronto-based gold and copper miner has already expanded its exploration portfolio this year by adding property positions in Tanzania, Guyana, Japan and Nevada.

Options traders believe Barrick Gold’s stock is just getting started and on Thursday purchased over $2.6 million worth of bullish call contracts. The contracts had expiry dates which ranged between Sept. 17 of this year all the way to Jan. 20, 2023.

See Also: Unusual Options Activity Insight: Barrick Gold

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The GOLD Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:35 a.m., a trader executed a put sweep near the ask of 3732 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $503,820 bearish bet for which the trader paid $1.35 per option contract.
• At 9:37 a.m., a trader executed a put sweep near the ask of 200 Barrick Gold options with a strike price of $21 expiring on Sept. 17. The trade represented a $27,200 bearish bet for which the trader paid $1.36 per option contract.
• At 9:38 a.m., a trader executed a put sweep near the ask of 1638 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $230,958 bearish bet for which the trader paid $1.41 per option contract.
• At 9:39 a.m., a trader executed a put sweep near the midpoint of 1463 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $212,135 bearish bet for which the trader paid $1.45 per option contract.
• At 9:40 a.m., a trader executed a put sweep near the ask of 424 Barrick Gold options with a strike price of $22 expiring on Oct. 15. The trade represented a $46,216 bearish bet for which the trader paid $1.09 per option contract.
• At 9:40 a.m., a trader executed a put sweep near the ask of 800 Barrick Gold options with a strike price of $22 expiring on Jan. 21, 2022. The trade represented a $135,200 bearish bet for which the trader paid $1.69 per option contract.
• At 9:40 a.m., a trader executed a put sweep near the ask of 201 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $28,542 bearish bet for which the trader paid $1.42 per option contract.
• At 9:46 a.m., a trader executed a put sweep near the ask of 200 Barrick Gold options with a strike price of $21 expiring on Sept. 17. The trade represented a $29,600 bearish bet for which the trader paid $1.48 per option contract.
• At 9:35 a.m., a trader executed a put sweep near the ask of 3732 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $503,820 bearish bet for which the trader paid $1.35 per option contract.
• At 9:49 a.m., a trader executed a put sweep near the ask of 200 Barrick Gold options with a strike price of $22 expiring on Dec. 17. The trade represented a $33,000 bearish bet for which the trader paid $1.65 per option contract.
• At 9:55 a.m., a trader executed a put sweep near the ask of 269 Barrick Gold options with a strike price of $22 expiring on Dec. 17. The trade represented a $43,040 bearish bet for which the trader paid $1.60 per option contract.
• At 10:05 a.m., a trader executed a put sweep near the midpoint of 301 Barrick Gold options with a strike price of $22 expiring on Jan. 20, 2023. The trade represented a $120,400 bearish bet for which the trader paid $4 per option contract.
• At 12:35 p.m., a trader executed a put sweep near the ask of 1516 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $230,432 bearish bet for which the trader paid $1.52 per option contract.
• At 12:35 p.m., a trader executed a put sweep near the ask of 2974 Barrick Gold options with a strike price of $22 expiring on Nov. 19. The trade represented a $463,944 bearish bet for which the trader paid $1.56 per option contract.