Thursday, March 11, 2010

Yamana Gold At Near Perfect Price

Our favorite gold miner, Yamana Gold, AUY, has dropped sharply in recent days after an analyst said its growth prospects were limited. Current price is is very close to $10, near a perfect price for our favorite straddles.

Yamana has dropped considerably, and it is highly leveraged to the price of gold, a great combination for high volatility and straddles.


Here are the straddles for March and April:

Computed with StraddlesCalc Tool, which shows the maximum moves needed for the position to achieve profitability, 4.90% in March and 10.60% in April.

Disclaimer: The author has no position in Yamana.

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.

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