| Bulls mining Alamos Gold for rally | |
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Traders are looking for Alamos Gold to rally by next spring.
optionMONSTER's Heat Seeker system detected heavy buying in the March 2.50 calls yesterday, with more than 12,800 trading for $1.75 to $2.46. These are clearly new positions, as open interest in the strike was a mere 5 contracts before the session began.
These long calls lock in the price where the stock can be purchased through mid-March 2016 no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but will fall if shares pull back. Either way these calls will track the stock price closely because they are far in the money . (See our Education section)
AGI rose 7.32 percent to $4.40 yesterday, bucking the broader market's selloff, but has dropped more than 70 percent in the last two years as the price of gold has plunged. CIBC upgraded the mining stock to "sector outperform" from "sector perform" on Aug. 19, following similar moves by Raymond James and Canaccord Genuity in July.
Total option volume in the name topped 14,200 yesterday, dwarfing its daily average of just 58 contracts for the last month. Overall calls outnumbered puts by 47 to 1, reflecting the session's bullish sentiment.
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Alamos Gold
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DEVELOPMENT STAGE |
CODE : AGI.TO |
ISIN : CA0115271086 |
CUSIP : 011527108 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Alamos Gold is a gold development stage company based in Canada. Alamos Gold develops gold and silver in Mexico and in Peru, and holds various exploration projects in Peru and in Turkey. Its main assets in development are CERRO JUMIL in Mexico and SAN LUIS PROJECT in Peru and its main exploration properties are GAP, EL JASPE, PUERTO DEL AIRE, BIRICU, LA PROVIDENCIA PROSPECT, MERCURY MINES, ESCONDIDA MIL, EL REALITO, LOS BAJIOS, LA YAQUI, CERRO PELON and MULATOS in Mexico, ABRA ROJO, UTCUCOCHA, COLQUI ORCCO and PUCARANA in Peru and AGI DAGI, KIRAZLI and CAMYURT in Turkey. Alamos Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 5.5 billions as of today (US$ 4.0 billions, € 3.8 billions). Its stock quote reached its lowest recent point on May 14, 2004 at CA$ 1.50, and its highest recent level on April 18, 2024 at CA$ 20.75. Alamos Gold has 266 320 000 shares outstanding. |