Best Stock on the Market

Put Spread on GOLD on 12/3/2013

Broken Support on GOLDRandgold Resources Limited (GOLD) engages in the exploration and development of gold deposits in Sub-Saharan Africa.

The company holds an 80% controlling interest in the Loulo mine and Gounkoto mine, as well as a 50% interest in the Morila mine located in Mali; an 89% controlling interest in the Tongon mine located in the neighboring country of Côte d’Ivoire; an 83.25% controlling interest in the Massawa project in Senegal; and a 45% interest in the Kibali project, which is located in the Democratic Republic of Congo.

As of December 31, 2012, it had proven and probable reserves of 16.36 million ounces of gold. Shares have fallen through a support level after gold prices came under pressure. Lower share prices are expected for this stock.

52-Week Trading Range: $60.17 - $106.00

Last Trade: $65.75

Trade

  • Buy 1 December $67.50 Put at $3.20
  • Sell 1 December $65.00 Put at $2.05
  • For a net debit of $1.15

Profit/Loss Analysis

  • Breakeven at $66.35
  • Maximum profit is $135.00 at strike of $65.00
  • Maximum loss is ($115.00) at strike of $68.00

Closing Summary

  • Sold 1 December $67.50 Put at $3.30
  • Bought 1 December $65.00 Put at $1.75

Position closed on 12/9/2013 at price of $1.55 with a 34.78% gain in 6 days.

Updates

12/9/2013 11:11:19 AM

Taking profits on GOLD put options.

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