I closed my position at a tiney profit and move the money to GDX. I do not understand the action on AEM. I am bullish gold, GDX will spread my risk better. Obviously not as much upside either but today's action is just too weird for me to keep as an investment. best of luck guys
If you embrace the volatility you can make good money on this stock selling covered calls when it's in 60s, buying calls when it's in the 50s, and selling cash covered puts when it's in the 60s too (also a great way to pick up shares at a discount to today's price). The reason I keep my positions are because - with the 3 to 5 percent moves that occassionally happen, the stock and all the options around it are a great trading platform. Of course if you want an investment to just hold for the long term this can be disconcerting, but if you have the time to manage you positions this is a fantastic security. And it'll work out in the long term too as this is the single best business I know of. An even better trading vehicle (my other fav) is AGQ which generally experiences even greater price changes on the day.
AEM went down on heavy volume this AM frThat was too much volume befoire om $63+ to $61. That is too much volume to be a fluke. Then we recover on low volume to be flat? Flat when gold is up and the sector is up @ 2%. Sorry it does not pass the smell test. That was too much volume before 10:30AM...
Well, it's trading off one cent at 1116 EST. Since I've heard no news, I must assume that this was just an attempt to force the price severely lower or somebody had a terrific need to liquidate an enormous quantity of shares in a single hour (maybe to cover margin calls or redemptions? Who knows?). Anyhow, with no news (yet!@!??) I just gotta assume it was one of those things that happen and I am glad I was able to reposition myself and take advantage of it...unlike yesterday where nearly the same thing happened as gold was pounded down to 1210 and finished around 1235 or so thus moving AEM stock around 2 points which created great option trading opportunities - as I was late turning on my computer I missed the entire thing. Today I caught it. Maybe this is somehow related to options and futures expiration this week (I think it's tmw).
At 10:32 EST 1,128,205 shares have traded, this on a stock that has traded 2 million shares a day over the last 10 days. Either it's blatant manipulation (for example naked short sales which only a few megafirms can do) or there's really bad news coming. I bought back my covered calls at a nice profit near today's (so far) bottom, and bought some long shot options with one third of the profits, specifically the Sep 70's and the Oct 75's. This strategy has worked for me all summer long and I will be really disappointed if it doesn't work even better in the next few weeks (the seasonally bullish (for precious mtls) fall).
The entire sector is up 2% while gold is up $9. AEM opened at $63+ then it when below $61 real quick on large volume when gold is trending higher. All I can think someone downgraded the stock but the timing was just plain weird. Any ideas? I can not find any news.