Just a quick note to let you know that in todays trading session in NYC our Call Options position was closed by a trailing stop that we had placed to protect ourselves in the event of the market moving against us.
We had purchased, on January 25th, 2010, more stock of Agnico-Eagle Mines Limited (AEM) 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.
At the close of trading in NYC yesterday the last price for these Options was $3.40 so we placed a trailing stop at $0.40, on our Call Options, meaning a fall at any time of $0.40 and we are out and so it happened. Gold prices managed to stick around $1080/oz in the UK but then got the chop in NYC falling to below $1065/oz, thus triggering our trailing stop as per the above chart.
If you are still holding them then smile because they have recovered and as we write gold prices in Hong Kong are standing at $1077.40, good luck with them.
So its back to the drawing board for us, however we have lost nothing and our powder is still dry so we live to fight another day.
All the best.
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