I initiated a put option on Barrick Gold (GOLD) at a strike price of $16.50, collecting a premium while taking advantage of the stock's favorable valuation metrics. GOLD currently trades at a P/E of 10.21, notably lower than its industry average of 13.21, suggesting potential undervaluation. The stock's PEG ratio of 0.31 indicates high growth potential relative to its price, again outperforming the industry’s average PEG of 0.45. GOLD’s P/B ratio of 1 also reflects a strong book value position against an industry average of 1.71.
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- Captain Ashford·11-14TOPThis could get tested. Barrick has had some troubles in Mali recently, and with the gold price pulling back, I see further downside. It might be a short enough time frame to avoid being assigned, but I would look for a lower entry myself.1Report
- YNWIM·11-13Looks like a strategic move1Report