Having purchased a small position for a short term trade at $2.90, we decided that our move on Randgold Jan 09 $40.00 puts wasn’t working out the way we hoped, therefore we sold our contracts today for a price of $1.70.
This gives us a loss of around 40% on this trade, which is disappointing. However we thought it was better to cut our losses at this point, rather than hold a contract that is expiring in less than 20 days. Fortunately this was just a small short term move for us, with the vast majority of our capital being in long positions on gold, plus a chunk of opportunity cash, to be deployed when needed.
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