Option update: Gold options active as hedgers adjust to $700 gold

Newmont Mining (NYSE: NEM) call volume & implied volatility elevated as gold above $704. NEM, the world's largest non-hedged gold producer, is recently trading up $1.95 to $44.25. Gold is up 1.95% to $704.20 according to Bloomberg. NEM call option volume of 71,210 contracts compares to put volume of 15,428 contracts according to Track Data. NEM September option implied volatility of 36 is above its 26-week average of 29 according to Track Data, suggesting larger price risks.

Barrick Gold (NYSE:ABX) calls active; volatility elevated on hedging as gold above $700. ABX a gold mining company is recently up $2.58 to $35.98. ABX has a market cap of $31 billion. ABX call option volume of 37,967 contracts compares to put volume of 11,279 contracts according to Track Data. ABX September option implied volatility of 38 is above its 26-week average of 29 according to Track Data, suggesting larger risk.

Buenaventura (NYSE::BVN) implied volatility elevated; BVN operates three gold & silver mines in Peru and also has controlling interests in four mining companies as well as a majority interest in several other mining companies in Peru. BVN is recently up $3.83 to $42.42. BVN September option implied volatility of 48 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.