Despite very positive new resource/reserve announcement released yesterday and early share price rise today, looks like AGO will finish poorly in the red at the close.
Possibly two factors involved. Firstly, general nervousness remains in the ASX as highlighted by today's volatility - some doubting US measures will cause economic recovery. Secondly, the listed options (AGOO) expire on 10 Feb significantly in the money at 20c strike (trading in the options at the close on 1 Feb). Its likely that there are holders of AGO selling into the price spikes to fund the exercise of their options. I have witnessed this in the past with a few other companies. Once expiry date passes, price movements tend to settle down.
I expect to see AGO claw back some of the recent lost value post the option expiry date - to what degree in the short term will of course depend on broader market factors.
share price
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