We are pleased to report that today we closed our position in Randgold Resources Limited (GOLD) by selling our Call options at a profit of 100%.
On 8th October 2009 we purchased Call Options on Randgold Resources Limited (GOLD) they were the December 2009 series with a strike price of $80.00 (GUDLP) and we paid an average of $4.70 per contract for them. Today our sell order was triggered at $9.40 as gold prices traded as high as $1200/oz and Randgold gained over $3.00 per share.
This trade took almost two months to mature being hampered along the way by persistent calls for a rally in the dollar and also by the fallout from the Dubai property problems. However, we kept our sell orders in place, perspired a little and were finally rewarded today when our position was closed out.
We now have a little more cash in the trading account and will look to deploy it shortly so stay tuned as we search for another undervalued stock which is ready to move.
The week started very well with the New Zealand All Blacks rugby team thumping the French in Marseilles which bodes well for the upcoming Rugby World Cup in 2011.
As always go gently as options trading is highly speculative and dangerous to our financial health, but for now enjoy the ride and keep smiling.
Any thoughts or comments on how we could do better are always welcome so please let us know.
Have a sparkling day.
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