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« Where Is the Economy Going in the Next Six Months? | Main | Kinross Gold Corporation: BUY! »
Friday
Jul252008

Kinross Gold Corporation: BUY CALL OPTIONS!

KGC Chart Call Options 26 July 2008

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.

These are fast changing times and its essential that you stay up to date with what is going on in the market. For our latest commentary and trading signals on gold, click here to subscribe to The FREE Gold Prices Newsletter and click here for The FREE Silver Prices Newsletter.

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Reader Comments (4)

How is it that you are able to offer a free newsletter with specific trading recomendations and their relevant rationales? I do receive other free newsletters --eg., Mr. Peter Grandich's--but he and the authors of the others I receive are at great pains to state repeatedly that they receive remuneration from the companies they write up. You, of course, do indicate what trades you make, and why: perhaps you consider that if enough readers follow your example, their so doing will strengthen the market movement you seek--a most legitimate approach to making your newsletter an income-benerator for you, of course.

I congratulate you on the quality of your recommendations, and on your modesty; about nothing am I complaining or suspicious--I simply remain curious as to why you do so much work for a free newsletter. I'm glad you do! Many thanks in advance for sharing that information with your readers. Neil

July 27, 2008 | Unregistered CommenterNeil Bishop

where to you guys get charts on option prices?

July 28, 2008 | Unregistered CommenterSteve Hoffmann

Steve,

One of our accounts is with Etrade, which is where the chart came from.

July 29, 2008 | Unregistered CommenterGold Prices

Neil,

We see it as a win – win situation. We post what we think and what actions we are taking. This in turn generates comments from our readers, which influences our thinking and hopefully provokes thought and discussion. We see this as being to everyone’s benefit.

On the subject of market movement, we don’t believe any single newsletter can move the market, especially not ours as we are so small only with 5417 subscribers, other newsletters have 100,000 plus subscribers.

July 29, 2008 | Unregistered CommenterGold Prices

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