On the 24th July 2008 we made a purchase of the JAN09 Call Options at a strike price of $12.50, paying $2.25 for the contracts in Yamana Gold Incorporated (AUY)
Yamana Gold Incorporated has seen its stock battered down from around $17.00 recently to about $12.50. In our humble opinion the sell off has gone too far with Yamana’s stock price trading well below its own 200dma and the technical indicators are languishing in the over sold zone.
True gold has been hit hard but by now we have come to expect the sell offs to be severe but short lived. This current situation is no different from others that we have been through so rightly or wrongly we have tried to buy these dips. Volatility is to be expected and where possible we intend to use these aberrations to our advantage.
As always an investment decision is yours and yours alone so don’t go too crazy on any one trade and be prepared to take a loss from time to time.
Yamana Gold Incorporated is appearing on a screen near you as it trades as AUY on the New York Stock Exchange and as YRI on Toronto Stock Exchange and as YAU on the London Stock Exchange.
All the best!
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