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.
[caption id="" align="aligncenter" width="570" caption="Barrick Gold (ABX.TO)"][/caption] [caption id="" align="aligncenter" width="570" caption="ABX.TO intraday"]1[/caption]