NovaGold Resources Ord Shs T.NG

Alternate Symbol(s): NG

Metals & Mining Gold

NOVAGOLD Resources Inc. is a precious metals company, which is focused on the development of its 50%-owned Donlin Gold project in Alaska. The Donlin Gold project is a development-stage gold project. The Donlin Gold property is located in the Kuskokwim region of southwestern Alaska on private, Alaska Native-owned mineral and surface land and Alaska state mining claims. The Donlin Gold deposits are situated at approximately 62-degree North latitude and 158-degree West longitude, which is 450 kilometers (km) west of Anchorage and 250 km northeast of Bethel up the Kuskokwim River. The project is held by Donlin Gold LLC (Donlin Gold), which is owned 50% by the Company's wholly owned subsidiary, NOVAGOLD Resources Alaska Inc., and 50% by Barrick Gold Corporation's wholly owned subsidiary, Barrick Gold U.S. Inc.

TSX:NG - Post by User

NovaGold Resources Ord Shs

Bullboard Posts

Post by redneck1on Dec 23, 2009 12:33pm

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Post# 16614418

shorts covering

Ka-chingo$- im selling into this strength, thanks shorts.....

Steep Rally in NovaGold Resources Prompts Heavy Call Volume

12/23/2009 12:21 PM
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NG

Option activity is heavy today on NovaGold Resources Inc. (NG), withboth put and call volume rising to twice their usual levels. Thisincreased attention to speculative bets comes amid a sharp rally in theshares, with NG up about 13.5% at last check.

NG price chart Today'smost active option is NG's January 2010 7.50 call, where 319 contractshave crossed the tape. Most of this volume has changed hands betweenthe bid and ask prices, making it difficult to determine whether thesecalls were bought or sold. This strike currently carries open interestof 2,034 contracts.

Meanwhile, the 7.50 strike is also the belle of the ball in theFebruary option series. This back-month option has seen 176 calls tradeon open interest of just 33 contracts, indicating that traders are mostdefinitely adding new positions here today. About 77% of this volumehas traded near the ask price, which points to buying activity.

Today's influx of call volume is just more of the same for NG, whichhas racked up a 10-day International Securities Exchange (ISE) call/putvolume ratio of 50.48. This ratio arrives in the 71st annualpercentile, revealing that calls have been purchased over puts at afaster pace than usual in recent weeks.

With NG trading near $6.50, some of today's out-of-the-money callbuying could be linked to hedging activity by short sellers. Shortinterest on the equity rose by 35.5% during the past month, which meansthat there are probably quite a few traders cursing today's rally.

-posted by Elizabeth Harrow
12/23/2009 12:21 PM