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As of: 11/30/08

Member since: Nov 06

AUY: March peak

AUY really skyrocketed from the $15 support I noticed in my last blog.  My target of $18.80 has been  exceeded to the amazement of many fellow traders.  Volume has been heavy.  Today saw a lot of profit takers, but not me.  I am trying out options trading, and a few days back i sold a $20 call on my position.  The calls price ramped up along with stock price so I felt kind of like I missed the boat.  However, since I have long position, cant feel too bad right?  Anyway today's decline broke through short term support and day traders should have sold.  I predict further weakness as options date gets closer.  I suspect we will see $16 before $20.  I will continue to hold (unless something catistrophic happens) while I build up my options experience.  After my options expire worthless, I will go long on additional shares upon good support (If we hit $15 again) and repeat the options selling.

 

auy_short.jpg

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EnglishTeach

Member since: Mar 06

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Trade Notes 0
Blog Posts 61

Age: 40's
UNITED STATES
EnglishTeach
yeah, covered calls is definitely the way to go.  gold should stay strong at least while people are looking for something to invest in other than equities.
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Jade

Member since: Dec 07

5 Day 29.10%
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3 Month -52.95%
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As of: 11/30/08
Trades 275
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Age: 30's
Jade
I am also in AUY with CC.  I bought at 14.84 and sold the $16 call when it spiked up to around 15.80. This capped my profit at 13.5%, but I felt better because AUY is so volatile. I had no idea the thing would go up so fast and now I'm likely stuck till the shares are called away. So I really hope you are right about it going back to 16. That would be perfect!
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