Update On My Easy Trade Idea

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.

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