Ken McCord
Goldcorp Inc.
GG-N
TOP PICK
Jun 09, 2009
A Pairs Trade. Gold is range bound until inflation takes off 6, 9 or 12 months from now. So in the meantime he would rather own the stock and right a call option, selling away the upside potential.
(Top Pick Feb 17/11, 2.8% Premium) One-month trade. Was long GG-N, sold covered calls ($40) against it. $1.32 premium. This time: Naked put write. $47.50 naked put, with the cash sitting there. $1.67 premium. Stock went up so he wont be put the stock.
Operation miss in the last quarter was much larger than the market expected. Great range of assets though (Disclosure: He's friends with the chairman.) This range and their balance sheet will let them weather the storm if they can turn the company around. If they can't turn around in 12 months, the company will have a new stock symbol. They need to increase operations soon.
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