RE:RE:Options purchased And from the soapboxThe cash for the April options is ready and waiting. You are correct....the timing of them is terrific. I have cycled thru 9 different sets of option sets in the last year. I have been fortunate enough to turn a pretty good percentage profit on each. Started off pretty small, but the holdings have now grown to a point where I control 5k shares. Just last week, I sold out of the Aug 18 calls, and picked up the Jan US$ ones this week...... I like to de-risk as much as possible(Options....I know), so will probably start cycling out of the Jan calls and into later date strings while still holding a core set as the year end production numbers come out on the 10th or so of January barring any critical events. This also has the benefit of deferring the Capital gains tax payment out to April 2020.
Bought and sold
$14 calls Jan 2018... 135%
$17 calls Apr 2018....10%
$15US calls Oct 18.... 28%
$20 calls Oct 2018...91%
$25 calls Aug 2018...260%
Bought and holding
$25 calls Jan 2019.........69%
$26 calls Jan 2019.........36%
$17.50 US calls Jan 2019..52%
$20 US calls Jan 2019 .. -5%
Options aren’t for everybody.......and are very high risk.......but next time readers....when you are sitting in front of the TV wasting away another hour, ...think about spending the time getting info on options trading..... almost every discount brokerage has on line tutorials, and there are books galore, and the net is full of stuff. Stay away from the canned programs (wanting to become a day trader) and learn about them...and then decide. The more informed investor is a better investor.....and like they say in the commercials....this is my family’s money and future. I am not a rocket scientist, and have found a company in KL that this strategy applies to. If you at least go and learn, you MIGHT want to use this market tool to your advantage ....or use options as covered calls where you want to lock in a premium to todays price....someone this past week sold 10 contracts(1000 shares) at a call price of $34 and got a premium of 1.70......that means that if the stock is less than 35.70, it wont be exercised , and the seller made $1170 with no cash down.......its all about what you expect to happen, and using risk to your advantage.
I think that expectations are high for KL and a lot of the expected news is built into the price, its the exploration news thats going to take us higher, and the inevitable takeout offers and rumours that will cause what I think will be 20-30% upside to the price over the next 2-3 quarters. The bonus of options is the leverage, and if you manage to buy on a dip or correction, you can make $ for dollar on the price increase going forward with very little capital on the table
GLTA
DYODD
MC