Picked up some more optionsPicked up 20 call contracts for Aug 18 at $25C (2000 shares) this AM to add to the pile. Cost was 1.90 per contract... $3800. No biggie, but 2000 shares today would cost $51200. Thats 13 times leverage.... Contracts are for $25C calls for August 18th. I looked back at the news release dates from last year, Starting on the 25th June 2017, here is a list of what happened
June 15 price 10.51
June 27 Drill results Taylor
June 28 Drill results Macassa
July 10 Production numbers from Fosterville
July 27 New 43-101 reserves for Fosterville
Aug 2 financials released
Aug 8 More drill results Fosterville
Aug 11 More drill results Taylor
Aug 11 Sprott bought more shares
From June 15 to Aug 18 the share price of KL popped from $10.51C to $14.74. HMMMMMMM
So the logic is that I hope we will probably see similar announcements PLUS I am hoping the exploratory drilling thats going on looking for perhaps 3 Fostervilles and anything that NOVO might add. PLUS share buybacks. PLUS anything else that might fall from the sky. I certainly dont expect the same 40% lift, but I am quite willing to gamble that I will recover my investment, and hopefully the upside....
Here’s how it plays out from a stock price perspective for the price at August 18
25.00 Lose 3800
26.90 Break even
27.50 $1200. 31.5%
28.00 $2200 57.9%
28.50 $3200 84.2%
29.00 $4200 110%
29.50 $5200 137%
30.00 $6200 163%. Thats a 20% lift in share price ......half of last years.
Good intentions and hope get you FA .......downside is total loss. Only in a non registered account in case of loss. I use IB brokerage, so Commissions are negligible. Any one else using options?
Cheers
MC