NEW DIRECTIONAL CALL PLAYS

Anglogold Ashanti - AU - close: 40.76 change: +0.68 stop: 38.70

Why We Like It:
Gold is starting to turn higher again. Many of the gold miners are beginning to bounce after a three-day consolidation. Thus we have a new short-term bottom to define support and limit our risk. I'm suggesting call positions now. Our first target is $44.95. Our second target is $49.00.

FYI: An alternative to a single company stock would be the GDX gold miner ETF or the GLD gold ETF.

Suggested Options:
I'm suggesting the November calls. My preference is the November 45s, which have the most open interest.

BUY CALL NOV 45.00 AU-KI open interest=6090 current ask $1.75

Annotated Chart:

Picked on September 30 at $ 40.76
Change since picked:       + 0.00
Earnings Date            11/02/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 30, 2009