Just a quick note to update the team on the purchase of the MAY 2010 series Call Options at a strike price of $60.00 on Agnico-Eagle Mines Limited, for which we paid a price of $4.64 per contract. These contracts closed last week at $4.90, for a rise of about 5%, having traded as high as $5.40 on Friday as gold prices held their ground.
We made the purchase on the 11th February 2010 when Agnico-Eagle was trading at around $58.00 area. The stock has rallied a little and then fell back and rallied again to close at $60.80 so these contracts are now 'in the money'.
We would now like to see gold prices open in London on a positive note with a reasonable follow through on the NYSE. Make no mistake about it, the NYSE is the dominant partner in this matter and any gains made in the UK can soon dissipate if the mood in New York is negative towards gold prices.
A quick look at the chart above and we can see that AEM has room to move higher and should improve providing we see gold move to higher ground.
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All the best.
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