Options strings open for Jan 18 2019KL has a relatively short set of Option strings....new ones opened for trading on wednesday.....nibbled a little today, and picked up a call option for $26C for 800 shares ...paid 3.10. To be profitable by even a dime, KL must be higher than $29.10 on the call date.........$2500 got me access to 800 shares....It would take $25k to buy that many shares....I now control the upside of 4000 shares at various dates and prices for $10.5K...... Sold my may calls yesterday for 1.86 US and turned a $760Cdn profit on a $480 Cdn investment ..178% in just 22 days. bought because the quartely was coming out, and couldnt imagine it wouldnt be pretty good...not big dough but fun... This is purely a momentum play with KL.....it may look overbought on the chart, but with all the stuff coming down the pipe....I will hold. I will add to the jan calls when I get close to expiry on my June calls.
Risk reward on these new options.
Price at call date
29 ...0 profit and I lose all my investment
30....800 profit 30%
31....1600 profit 64%
32....2400 profit 96%
33....3200 profit 128%
34... 4000 profit 160%
Nothing is in the bank till you sell, these are just the what if numbers. Imagine what a takeout bid would do for the numbers above. It might be prudent to pick up a few if you think KL might be a target....
GLTA
MC