Our Call options on Kinross Gold Corporation gained over 100% in price and triggered our sell order as the stock of the Kinross Gold Corporation rose 4.39% to close at $23.23.
In just fifteen days this trade has been very kind to us, as we have achieved our objective by doubling our stake.
As we can see from the above progress chart of these contracts our signal to buy call options was as close to the bottom of this consolidation period as we could get when on the 13th June we made a purchase of the JAN09 Call Options with a strike price of $20.00, paying $2.68 for the contracts. Today we are out of this trade and have the cash back on the sidelines ready to pounce on the next opportunity.
A number of our readers have followed us into this trade but we don’t know yet if they have adopted the same exit strategy or not. Hopefully some of them will drop us a line telling us how they have played this trade.
When we are in a ‘winning’ situation with a trade it is always tempting to re-think the exit strategy and we did. However we decided that the order to sell must remain in place and enjoy the pleasure that winning brings. The old adage of the market being driven by fear and greed is as true as it ever was. We were tempted to hang in there in the hope of making a few more bucks and no doubt we will get berated if these options continue to appreciate as we will have made the mistake of getting out too early!
For those of you who wish to stay in this trade do proceed with care as this stock has risen from $18.00 to $23.00 in a couple of weeks generating a gain of around 28%. The technical indicators are almost on the ceiling so Kinross could take a breather at this point. However don’t let us put you off.
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For those of you who are interested in options trading in the silver sector we are currently running a trade on Hecla Mining Company which trades on the New York Stock Exchange under the symbol of HL and it too had a good day yesterday by increasing in value by 47.62%. To receive the FREE silver prices newsletter and alerts please click here.
Enjoy the weekend and come back next week ready to move quickly, this summer may not be as lacklustre as we thought.