Gold Stock
Explosion:
Quick Trade Opportunity
- Newmont
Ralph Kettell
Archives
August 12, 2003
This recent breakout in gold
stocks is providing numerous opportunities for those fortunate
enough to be riding the wild gold bull. The HUI and also Newmont
have broken out and are trading at or near multi-year highs.
This morning's pull back in
the metals is proving an excellent entry point for the following
option trade.
If one were to take a long
position in 10 NEMIH, which are September 40 Newmont call options
at $1.00 (currently $0.90) or less, then wait a few days for
Newmont to bounce back up a bit from the profit taking of this
morning. When Newmont has then moved up to near 40, leg into
a bull spread by selling 10 NEMIV, the September 42.5 Newmont
calls for $0.75 or more.
This would net you a bull spread
for $250 (or less depending on precise entry points) which will
have the potential to go to $2500 if NEM closes above $42.50
before September 19, 2003.
Happy Trading.
August 12, 2003 12:00 PM
Ralph Kettell
Archives
email
Disclosure:
The author is not an investment advisor and this article should
not be construed as a recommendation to invest in the discussed
securities. The author is merely presenting some possible scenarios
and what the potential risks and rewards associated with an investment
in these securities could be. The author has not been paid to
write this article, either in cash or securities.
Disclaimer:
The author's objective in writing this article is to make potential
investors aware of the possible rewards of investing in this(ese)
security(ies) and to elicit interest on their part in this stock
to the point where they are encouraged to conduct their own further
diligent research. Neither the information, nor the opinions
expressed should be construed as a solicitation to buy or sell
this stock. Investors are recommended to obtain the advice of
a qualified investment advisor before entering into any transactions.
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321gold
Inc
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