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

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

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 4 MFC 10OCT Puts 17.00 @ $1.48, Mark $16.38
5. Sold 400 VEN.TO @ 10.70, Breakeven