Remember Rubicon (RBY)? They were teased by Frank Curzio several months ago as a possible quick double on a takeover, and, as I noted at the time I wrote about them, I speculated on the stock a little bit with a small relatively short-term options position.
I don’t write about options much, but I told you I’d let you know if I sold this position … and I did that today, at a decent profit of a bit less than 50% before commissions. Not dramatic or life-changing, particularly for a small speculation, and not a double in the underlying stock just yet (RBY is up 15-20% so far from when it was teased in June), but not bad. RBY is still relatively low-risk as far as small gold companies go, with not much debt and a stock that’s not all that volatile compared to the real “juniors” and some good potential earnings growth if all goes well at Red Lake, but for my longer term equity positions and “real” investments in the precious metals space I still prefer to stick with the royalty and streaming companies.