On the 17th June 2008 we purchased the JAN09 Call options at a strike price of $10.00 for $1.00 per contract for the Hecla Mining Company. At the time we were of the opinion that this stock was oversold having been sold down from the $13.00 level to close at $8.28 when we made our purchase.

On Friday the 27th June 2008 this stock closed at $9.72, up $0.94 or 10.71% on the day. The Call Options responded accordingly and put in a good day by finishing the session at $1.55.

Silver being the underlying commodity driving these gains closed at $17.71 for a gain of $0.49 or 2.85% for the day.

A couple of good days next week could see silver prices going higher dragging our Call Options with them, so we will now have to give some consideration to an exit strategy. We entered this trade in the belief that we could double our stake and that is what we will try and hang on with but the environment can change ever so quickly these days so stay on toes and be prepared to move fast.

Have a sparkling weekend

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Footnote:

We have closed our trade with the Call Options on Kinross Gold generating a profit of 100% in just two weeks.