On the 24th July 2008 we made a purchase of the JAN09 Call Options at a strike price of $20.00, paying $2.50 for the contracts in Kinross Gold Corporation (KGC)
This may sound familiar to you as we bought these very same call options in KGC on the 16th June 2008 paying $2.68 per contract and sold them on the 28th June 2008 for $5.30 per contract generating a 100% profit in two weeks. We have re-purchased these call options because we think that the sell off in Kinross has been over done.
The $1.2 billion bid that they have tabled for Aurelian Resources Incorporated has spooked a number of investors adding to the selling pressure caused by gold prices heading south. In our very humble opinion the damage is done and the sellers have bolted for the sidelines. Conventional wisdom tells us to buy on dips; this is one heck of a dip, which takes a little courage to buy into. However we have decided to take the plunge wearing our best cavalier hat in the process. We do get it wrong from time to time so don’t go too mad on any of these trades. It is very important to be able to take a hit but not be out of this bull market completely.
Kinross Gold Corporation trades on the Toronto stock Exchange under the symbol of ‘K’ and on the New York Exchange under the symbol of ‘KGC’
Have a great weekend.
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