Randgold Resources Limited: Bought a few Call Options

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.

Your thoughts are of course most welcome.

Got a comment then please add it to this article, all opinions are welcome and appreciated.

For those interested in Options Trading please click here.


To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.