As we can see from the above chart the down turn in gold prices had a dramatic effect of AEM sending the stock price $10.00 lower in just a few days with the stock closing at $56.76 in today's trading session. We can also see that the technical indicators have U-turned suddenly and are now heading towards the floor.
This drop was harder and faster than we anticipated and put paid to our trade so we closed the position for an average of around $0.20 per contract today. There were times when we could have taken a profit on this trade, however we held onto the possibility of making a bigger profit and we got it wrong and paid the price. We also made the mistake of sailing too close to the expiry date which is this Friday leaving ourselves no room to manoeuvre. So there we go, its back to the drawing board for us.
Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.
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The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:
On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.
On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.
Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more.
Silver-prices.net have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.
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