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The Rationale Behind The Timing Of My New KinrossGold (KGC) Short Exposure

|Includes: Kinross Gold Corporation (KGC)

As I posted earlier this year, I am not a big fan of Gold right now.

  1. 15% SL on the Stock Short.
  2. No SL on Jan18'14 $4 Put.
  3. If I had to go long into a Gold-related Stock … I would go for IAG (as I did in the past).

On a hypothetical $100k investment:

  1. KGC = $5.00 … $27.5K loss
  2. KGC = $3.50 … $116K gain

Gains are driven by the long Put … Short underlying will allow me to recover the paid Put premium … in case of right idea - wrong timing.

Here is what I am Expecting from the Gold Market the next year!

- Bad Start into 2014 ... reaching the 1'080 area

- Pull back

- Resumption of the downward trend ... and finally break the 1'000 support

Of course ... that's just my personal opinion ... and I would not be surprised to be proven wrong. Anyway... I am with the KGC Position ... I put my money where my mouth is.