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.
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
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