Having trailed our intentions regarding Randgold Resources Limited (GOLD) today we decide to pick up a few Call Options and they are 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. Todays trading range was between $5.30 and $5.50 per contract.
We have made this purchase in anticipation of gold prices steadying and then making some headway in a northerly direction. If and when this happens Randgold should respond accordingly with some decent gains.
Taking a quick look at the chart we can see that Randgold has taken tea with its 200dma having dropped from a recent high of $86.00 to trade at $67.85. The technical indicators are in the oversold zone which suggests a bounce back, hopefully soon.
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 sparkling day.
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