Gold mining operator Barrick Gold (GOLD) is up 21% over the past year, about in-line with gold’s move higher. One trader is betting on a further rally through the end of 2026.
That’s based on the December 2026 $22 calls. With 854 days until expiration, 7,466 contracts traded compared to a prior open interest of 146, for a 51-fold rise in volume on the trade. The buyer of the calls paid $3.35 to make the bullish bet.
Barrick shares recently traded for about $19. The stock would need to rally by $3, or about 16%, for the option to move in-the-money. Shares are near their 52-week high of $19.45.
Barrick is one of the largest gold mine operators globally. Revenues are up 4% over the past 12 months, but earnings have soared 146% thanks to a rising gold price.
Action to take: Trends for precious metals and commodities remain favorable over the next few years. Investors can also get a 2.1% dividend today, although that payout will vary based on Barrick’s earnings.
For traders, the December 2026 $22 calls have a long time to play out, but could easily see triple-digit gains along the way, especially as gold prices continue to trend higher. More aggressive traders could look for a shorter timeframe for a gold rally to let this trade play out.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.