Options results on KL for the yearWow what a fun year....Past results have no impact on future gains, but this strategy has worked REALLY well. All along, I have reported on buys and sells of options.
Today I closed out all positions due to close on Jan 18. I have one open position left, just recently entered into....a $25 US call due January 2020.....new strings have opened up for Jan 2020 and Jan 2021 on the US options board.
Here is how it went. Options are gambles....Cash accounts only (in case you are wrong).....and only with a small portion of your investment monies....and only $ you could afford to lose 100%.......
All transactions converted to Canadian....and includes cost of commissions. %’s are RAW...not annualized. Started out using RBC, but also used Interactive Brokers as their commissions are way less....and I am cheap!
None of these amounts are BIG dough, but it has a definite pattern to it. Everyone should learn about options and how they can work for you...not just plain gambles like these, but covered calls on stuff you hold..lots of brokerages have courses, and lots on the net.....
At one point, I controlled the upside on 6400 shares of Kirkland, and had about 25 k on the counter for it.....would have cost $234,000 to buy that many shares at the close today...... I now use the US options market almost exclusively for buying...today the Canadian market had only 22 trades on KL options total...the US options market had 208 trades ....... For those of us that are Canadians, we have to realize that KL is now a world stock....not just ours.
March 13 18 bought 10 calls @20C for 2.45 $2475
May 31 18 Sold 10 calls @20C for $4.75. $4728 .......91% return
Dec 13 17 bought 10 calls @18C for 1.90 $1913
May 31 18 sold 10 calls @18C for 6.10. $6088..... 218%
Apr 27 18 bought 5 calls @17.50US for .64. $428
May 18 18 sold 5 calls @17.50US for 1.86. $913......113%
Mar 6 18 bought 7 calls @15US for 3.20. $2950
Jun 12 18 Sold 7 calls @15US for $4.16. $3757..... 27%
Jun 13 18 bought 20 calls @25C for 1.90. $3825
Aug 3 18 sold 20 calls @25C for 4.95. $9875.......160%
May 22 18 bought 8 calls @25 C for 3.10. $2500.00
Jan 3 19 sold 8 calls @25C for 10.70. $8550.........242%
May 18 18 bought 8 calls @26C for 3.10
Jun 19 18 bought 4 calls @26C for 3.95. $4096
Jan 3 19 Sold 12 calls @26C for 9.75. $11675...........185%
Jun 12 18 Bought 10calls @17.50US for 3.59. $4691
Dec 10 18 Sold 10 Calls @17.50 US for $6.40. $8533........81%
Aug 9 18 Bought 14 calls @ 20US for 3.80. $6966
Jan 3 19 Sold 14 calls @20US for 6.80. $12866.......84%
So....why close out all positions except one......with these kind of numbers, if I didn’t cash out I would be an idiot. With the close expiry date Jan 18 2019....they are almost completely derisked. A little bit of sweating waiting for Jan 1, as any tax burden will now be pushed out to April of 2020.
I am in the process of establishing new positions, for Jan2020 and Jan 2021.......ALSO.... on December 18 Eric Sprott gifted 1,950,000 shares to his foundation . He didn’t reduce any other holding. Now you could say that he still controls them in his foundation, but with all the shares in all the companies that he holds, he clipped out of Kirkland........
I think we are a buyout target sooner rather than later...... Of note, this week I sent notes to both KL and Centerra about the Fosterville NSR that KL supposedly is trying to get arbitration on...in order to get it back.....was sold to third party Triple Flag by Centerra along with other streams.....no response from either. Still cant understand how it got away from us.....consider it the biggest faux pas KL has made...the stream applies to all minerals found on the entire Fosterville property.....ouch
GLTA
MC