Goldcorp (NYSE:GG) engages in the acquisition, development, exploration and operation of precious metal properties. It primarily explores gold, silver, copper, lead and zinc. The company’s principal mining properties include locations in Canada, Mexico, Guatemala, Argentina and the United States.

Recent news, both on the earnings front and political side, has put a serious hurt on shares of GG. Shares have fallen more than 25% since March 1, with GG dropping from the $50 level to under $38. GG is now trading at the cheapest to spot gold ever, as the ratio of GG to GLD reaches another lifetime low.

With physical gold holding to support around the $1,650 level, I would look for GG to begin to base as well, then slowly move higher.

Given my somewhat bullish outlook for gold over the coming quarter, I feel GG will move to the $40 level by July expiration.

Based on GG’s closing market price of $38.10 for May 2, 2012, and using a target price of $40, and a target date of July 20, 2012, option strategies to consider include buying a July put butterfly, buying a call spread or selling a put spread, or using another options strategy that best fits your trading style and risk-return objectives.

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As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities.