KL took a big dip today.
It really took a tumble. Came down like the snow came down last week. I chased the alerts down to around $43.30. It seemed to let up there, holding around $43.70.
What does all that mean to me? What is my plan?
Well, I have a put at $42. When KL reached the $42-$43 range I thought it had topped out (for now) and wasn’t going to climb any further. But it did climb from there, all the way up to $48-territory. So worst case scenario is I cash in the $42 put should the stock fall low enough between now and expiry day on March 15.
I didn’t see any news out for KL. I think what’s happening is a combination of profit taking and gold prices being down.
I bought back my $48 call and booked a $467 profit. Buying back the covered call left my net average cost of 500 shares of KL at $31.20.
At the end of the day at market close, KL landed at $45.42. I did not panic sell. I bought back my covered calls and booked a profit. I was glad I had the $42 put. Even though the price did not fall below $42 today, I had greater peace of mind knowing I had that insurance in place.