Since our last update, on June 5th, we kept our NCM position without selling calls, as we expected gold prices to go higher. Our expectations were confirmed and the metal price rose nearly 10% in less than a month in USD. NCM shares have risen by 28% since we bought them on May 09th.
We decided to write more covered calls:
Date: July 12th
Strike (AUD): 26.50
Expiration date: July 28th
In case of being exercised on this option, we expect to get a 36% return in less than 3 months. If the option expires worthless, we may have to analyze markets conditions to decide whether to sell more calls or to simply carry the shares, as we did last month.
We will be releasing a new report as soon as we decide to do any other moves regarding this trade.