Add AEM Calls

Playing $1,000 Gold

By Bryan Bottarelli
Wednesday, May 13, 2009 10:35 AM EDT
Wed, 13 May 2009 14:35:00 GMT

PLAY: Buy the AEM June 55 Calls (AEM FK) at or under $2.90, good for the day. Place a protective stop limit at $1.40 and a pre-determined sniper sell at $5.00.

Dear Bottarelli Research Member,

After locking in a quick profit on our ABT calls, let’s review the recent price movement of gold (shown below):

GOLD

As you can see, gold has successfully established a support point at the 50-day moving average around $870. This is an early indication that gold will mount another assault on the $1,000 level. If this move plays out, we want to add upside exposure now. Therefore, let’s add June calls on Agnico-Eagle Mines (AEM – NYSE).

AEM

As you can see from the weekly chart above, AEM is just about to engage in a breakout move above its 50-day moving average. It’s no coincidence that this breakout move on AEM is occurring while gold prices are moving higher. If this pattern continues, AEM could easily move up to $70.00 per share. Let’s get positioned to ride this move now! Here’s the play…

PLAY: Buy the AEM June 55 Calls (AEM FK) at or under $2.90, good for the day. Place a protective stop limit at $1.40 and a pre-determined sniper sell at $5.00.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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