On the 25th January 2010 we signaled our intention to acquire more of this stock and some Call Options when we posted an article entitled Agnico-Eagle Mines Limited (AEM) in the Buy Zone.
Today we purchased more stock at an average price of $53.24 and we also acquired a few Call Options and they are the MAY 2010 series at a strike price of $60.00, symbol AEMEL for which we paid a price of $2.85 per contract.
If you pop back to early December 2009 these very same contracts were trading at $12.00 plus so they have dropped significantly since then. Lets hope that they can bounce back to a profitable level and quickly.
Agnico-Eagle Mines Limited opened the day in positive territory so we waited until around 2.00pm EST before making a move by which time the stock had touched $53.00 and gold appeared to have steadied. Our order was filled at the slightly higher level of $53.24, but we are happy to buy them at this level as we do expect them to trade much higher. If a bounce in the stock price comes soon then we may treat this purchase as a short term trade and take a profit, otherwise we are content to hold as this is a quality stock.
As for the Call Options we have chosen the May Series which allows a little time for gold to improve and hopefully Agnico will improve with it. Should we be fortunate enough to register a reasonable profit then we will either take some profits and/or place a stop in an attempt to lock in any profits should the stock price fall.
Good luck with them if you do follow us on this one and remember not to hit any one trade too hard, live to fight another day etc.
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