Loading ...Time For A Speculative Option Trade
This set-up warrants taking a small, speculative position for the coming rally in gold. The best leading gold related stock is RGLD. The chart shows it is ready to pop and my intermediate target is the gap at 130. There are any number of ways to trade this depending on your risk tolerance and what you want to accomplish. On those rare occasions when I shoot for a grand slam(baseball referrence), I go for a short term out of the money call that will give me significant bang for the buck leverage, but only with a very small amount of capital. If it doesn’t move right away( by early next week) I will add on another call position at an appropriate strike and for a further out expiration. I am confident RGLD will reach 130. The question is by July 15th expiration or by the August 19th expiration. Start with the July and if necessary add in the August. I am starting with the July 115 call and will add an August next week, if necessary. 
Thanks Sir CM.
What is your take on AEM?
AEM at today’s low down 29.5% from 52-wk high
RGLD at today’s low down 26.3% from 52-wk high
Even though I sold at a very tiny loss, I consider myself lucky to have got rid of some AEM, which I was “forced” to get as Kirkland Lake got acquired by AEM.
05/04/2022 15:56:54 Sold 7 AEM @ 59.6 417.20 0.00 0.00
04/28/2022 15:36:09 Sold 17 AEM @ 55.8401 949.28 0.00 0.00
04/20/2022 14:49:07 Sold 27 AEM @ 64.7006 1,746.91 0.00 0.01
These days it is even tougher to buy any PM junior or major.
If your “call”, pun intended on RGLD is correct, many good juniors should bounce even more.
GL
My take on AEM has been the same for months. As I have posted a number of times I felt the others, eespecially NEM were better managed and better performing companies. I increased my negative thoughts about AEM after the former head of Kirkland left just days after taking over as CEO of AEM. I continue to believe we haven’t yet heard why he left and that it has something to do with over valuing Kirkland which will eventually come out. While all the gold miners have been performing poorly during this period of gold consolidation, AEM continues to under perform and I would stay out and away from it.
I couldn’t agree more, Sir CM.
While RGLD is a safe haven name, I’m in the PM shares for high-risk-high-reward.
Back to AEM.
I’ll wait for my remaining position in AEM to be 10% or so profitable, and at that time I’ll be happy to exit it for good.
I hold 116 shares, average 53.09 per share.
On further thoughts, I would exit it today, even at 10% loss, if I could find a better bet.
RGLD is a well-known name.
Well known names, in the PM complex, are unnecessarily slaughtered.
If gold goes down 1%, RGLD could go down 3%.
By the way, the above “exit strategy” for AEM, is what I used for NEM too, and never had to look back.
Even today NEM is 62 bucks.
I exited NEM for a nice 11.93% gain over a year ago.
05/13/2021 12:52:40 Sold 50 NEM @ 68.9801 3,448.98 0.00 0.03
05/12/2021 15:04:15 Sold 35 NEM @ 68.0149 2,380.51 0.00 0.01
05/10/2021 15:27:11 Sold 38 NEM @ 68.3826 2,598.53 0.00 0.01
Cheers,
GL
One final suggestion regarding switching out of AEM. I suggest that GFI right here at 9.39, as I type this, will out perform AEM over any time frame into the future.
Thanks Sir CM, on the GFI tip.