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« The Tiring Nature Of Media Propaganda | Main | Agnico-Eagle Mines Limited: Re-Purchased Call Options »
Friday
Feb122010

Randgold Resources Limited: Options Trade Update

Randgold logo.JPG

This is a quick update on the Call Options we purchased on the 9th February 2010 on Randgold Resources Limited (GOLD) the June 2010 series with a strike price of $75.00 (GUD Jun 19 ‘10 $75 Call) and we paid $5.50 per contract for them.

We have made this purchase in anticipation of gold prices steadying and then making some headway in a northerly direction.

On the 5th February 2010 we wrote the following:

Randgold Resources Limited (GOLD) has been taking a battering lately along with most other gold producers which is interesting to us as we like this stock a lot but do not own any of it at the moment. The current correction could present us with the buying opportunity of the year so its now time to watch it carefully and be prepared to pounce.

As we can see from the above chart this correction could well bring Randgold back into the frame as a Buy having fallen 5.91% today alone and to close at $67.29. This is a fair way down from its recent high of almost $90.00 per share, a price that left us thinking that we might never own it again. Still never say never in this business, its so volatile and can change on a dime as we have said many times before.

As we write these contracts are trading today at bid $5.30 and ask $5.60

Randgold has been kind to us in the past and we have waited patiently for this opportunity to present itself, so its fingers crossed.

Randgold Resources Limited has a market capitalization of $6.11 billion, a 52 week trading range of $40.41 to $90.30, a P/E ratio of 114.65 with an average volume of 1.0 million shares traded.

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 great weekend.


All the best.

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