Sold 3 ABX 10OCT Puts 46.00 @ $4.15, Mark $43.97, Breakeven exit

By Paul | Published: June 15, 2010

My Barrick Gold short isn’t working as I hoped.  My puts premium is moving closer to breakeven to my purchase price of $4.00.  Furthermore, the market is cracking above resistance levels today.  In particular, ABX.TO is marking a bullish engulfing candlestick pattern after a test of its 50-day moving average support (Figure 1).

Yes I know, there’s a massive resistance at $44.00 for ABX.TO.  But…

As much as I’d like to believe in the bears, this short position is not safe anymore.  I can’t let a positive trade turn negative.  It’s better to miss an opportunity than lose money.  So I’m ditching this now to reduce my risks at above breakeven seeing that I have another smaller short position in play.  Which is underwater at the close, by the way.

My return on this trade is ($4.15 – $4.00) * 100 * 3 contracts = $45 – $12.95 x 2 commissions = $19.10

I’m just lightly short now and mostly in cash.

Barrick Gold (ABX.TO)

ABX.TO intraday

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Related posts:

  1. Bought 3 ABX 10OCT Puts 46.00 @ 4.00, Mark $44.67
  2. Sold 4 MFC 10OCT Puts 17.00 @ @1.43, Mark $16.27, Loss -0.5%
  3. Sold 3 PAA.TO 10DEC Puts 25.00 @ $2.25, Mark $24.62, Loss 0.3%
  4. Bought 3 CM.TO 10Oct Puts @ 5.00, Mark $74.02
  5. Bought 4 MFC 10OCT Puts 17.00 @ $1.48, Mark $16.38
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