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Bleak outlook for AngloGold Ashanti

David Russell (david.russell@optionmonster.com)

Traders continue to bleed the upside out of gold miners and, once again, AngloGold Ashanti is the victim.

optionMONSTER's tracking programs detected the sale of some 5,500 October 14 calls for $1.67 and the purchase of an equal number of October 21 calls for $0.17. Volume was below open interest in the 21s, indicating that an existing short position was closed and rolled to the lower strike.

The investor collected $1.50 in this credit spread while lowering by $7 the level at which he or she is short the stock. The trade is similar to a transaction in the South African miner one month ago . Harmony Gold and Kinross Gold have also been targeted. (See our Education section)

AU dropped 4.94 percent to $14.42 yesterday. The shares have lost more than half their value this year and are now back to their lowest levels since the late-2008 market crash.

Gold miners have followed bullion prices lower amid mild inflation and as big institutional investors unwind long positions. They're one of the worst-performing groups in the last 12 months on our proprietary researchLAB market scanner.

Total option volume in AU was 13 times greater than average in the session.

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