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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: xdll who wrote (628)	5/30/1998 2:52:00 PM
From: KAZHAK	Respond to of 3558

Good post...The volume in ABX was heavy for a third day, and this time I was able the check the Canadian options volume, which was not nearly as active as the US. My experience is that increase in option volume, especially when coupled with increases in implied volatility, is a reliable signal that the stock is going to move, But not necessesarily in the obvious direction. I do think the odds favor a move up.

To: xdll who wrote (628)	5/30/1998 8:35:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 3558

''Open interest in calls is up to about 71,000. Open interest in puts is only 21,000,'' he said. ''That's bearish.'' It's bearish because it's shows that the hedge {example} funds are 'selling' the call options into the market. This is seen by the decreasing price in ABX relative to increasing call options. This means that they are going against the Black-Scholes curve, going against implied volitilty by sacrfice of premium. But they aren't buying the puts, which suggest that they don't own the equity, or believe that the Commodity {Gold} is being held within a range.