Friday, December 17, 2010

AEM - What Happened?

AEM is my largest position dollar wise, so I watch it very closely.  I expect great things from this company, but was expecting some weakness in gold and the miners short term.  I placed DEC and JAN 85 sold calls on when RSI7 gave me a signal.  What I did not expect was the negative reaction on news that prodution costs were higher than expected, even though they raised gold reserves and quadrupled their dividend.

These things happen, and I was as prudent as I could be on a stock I won't sell.

So where does that leave me? I closed my calls yesterday when it hit the fib line, and feel comfortable that the stock is oversold and at support.  I will rehedge Jan75's on addtional weakness next week, or will buy calls on a RSI7 buy signal.


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