INVESTMENT NEWS&IDEAS

Why Gold Prices Could Fall From Here… And Two Ways to Play a Move by Karim Rahemtulla , Options Expert Tuesday, Nov 24, 2009: Issue #1144 Of all a great investments we could have done in 2009, bullion is right up there between a most appropriate of them. The cost of bullion has surged this year, receiving bullion shares upwards with it. Readers of my Xcelerated Profits Report have stage a register with 45% increase upon Goldcorp (NYSE: GG ) as well as a triple-digit leader upon Golden Star Resources (NYSE: GSS ). We’re additionally up large upon Yamana Gold (NYSE: AUY ) during a moment. All is good, right? On a surface, perhaps. But not if we hold what a options marketplace is saying… Yamana Options Signal a Share Price Drop Using Yamana as an example, a options marketplace is betting which over a subsequent twelve months or so, Yamana might tumble from stream levels of around $13 behind in to a singular digits again. Just take a demeanour during a Jan 2011 $7.50 put options (the right to sell Yamana shares during $7.50), now trade during $0.70 cents per contract. This equates to a put customer thinks Yamana’s cost will tumble to $6.80 – roughly 50% next stream levels – in sequence to be in a money. The $6.80 cost is subsequent from subtracting a cost of a choice from a set upon cost ($7.50 reduction $0.70 = $6.80).

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Why Gold Prices Could Fall From Here… And Two Ways to Play a Move