It now has gained $2 in the trade. It’s outperforming the XAU and HUI indices and will continue to do so.
In the report, explaining why it’s an easy $3 point trade if the mining stocks just go sideways, I’ve included a technical analysis report from Denaliguide on the stock. His response after he looked at the stock technically was “my gawd, it’s fantastic!” Nick thinks its an easy $8-10 point trade with some patience and cooperation from the sector. I’m holding it my fund for at least $5, $3 more from here. In my view, it’s low-risk relative to the sector/market.
Either way, this idea is still valid and, in the context of large-cap miners, will absolutely outperform the large-cap segment of the sector going forward.
You can see the report here: Large-Cap Gold Miner: Easy Trade Idea
I prefer going long outright – which I did in our fund on Friday mid-morning – but it can “enhance” your returns by going long and shorting out of the money September puts, which still have a lot of premium in them. Large money managers can use this opportunity to buy into a large cap miner at a great relative price.