Barrick Gold (NYSE: ABX) shares are rising nowadays as front-month gold futures are making a charge at $1000. Gold is rising in part due to the weakening US dollar, as it is seen as a hedge against such movement. whether you think that the company won’t fall by too much in the coming months, soon after now could be a good moment to look at a bullish hedged trade on ABX.

After hitting a one-year low of $26.94 final March, the stock has risen steadily all year to hit a one-year high of $54.00 in January. ABX opened that dawn at $51.98. So far nowadays the stock has hit a low of $51.61 and a high of $53.39. As of 12:55, ABX is trading at $53.10, up 1.92 (3.8%). The chart for ABX looks bullish and regular, while S&P gives the stock a positive

For a bullish hedged play on that stock, I would consider an April bull-put credit spread below the $42.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn’t do what you think but still leverage nice returns. For that specific trade, we will prepare a 4.2% return in just one and a half months as towering as ABX is above $42.50 at April expiration. Barrick would have to fall by more than 19% before we would start to lose money. memorize more about that type of trade here.

Continue reading Barrick Gold (ABX) on the move as gold approaches $1,000

Original post by Brent Archer

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