Chart courtesy of Stockcharts
Our Randgold Resources Limited (GOLD) Options Trade is Up 60.87% since our purchase on the 11th June 2009 when we purchased the September $65.00 PUT contracts in Randgold Resources Limited in anticipation of a pullback for $5.00 per contract. Yesterday these contracts closed at $8.10.
As we can see from the above chart Randgold closed down 5.33% yesterday at $61.15 which is just below its 50dma. If you followed us into this trade then you could now bank the profits and walk away. Our opinion for what it is worth, is that Randgold could still go a little further down so we will continue to hold this position for now. Anyway you can sit back and watch us struggle in our attempts to maximize the profit on this trade.
On the 28th May 2009 we reported our intention to take profits on Randgold Resources Limited as depicted on the chart below and on the 29th May 2009 we sold our entire holding for an average price of $68.69 for a return of 82.44% in less than one year.
We acquired this gold producer on the 18th of June 2008 for $37.65 and the stock quickly rallied to $55.00 before being caught in the ensuing sector sell off to trade as low as $27.70, so it has been a volatile ride making us smile and cry as the stock oscillated from being in favour to unwanted over short periods of time.
Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS.
Have a sparkling day.
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