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Gold/Mining/Energy : Oil Sands and Related Stocks
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From: Taikun10/11/2005 2:29:36 PM
   of 25575
 
OT/ I'm writing PDS Puts here. I figure the Jan 08 $45 Puts for $6.40 will result in one of three events:

1. Expire worthless
2. After the $25 dividend payment the Puts will be adjusted so if I get Putted I'll receive $25 and 100 PDS trust shares which, at that price of $20, will yield over 10%, a high amount for a services trust as PDS has 1/3 of the N. American drilling mkt and this yield, would be greater than much smaller trusts like PHX and PES
3. The OCC violates its guidelines that "special dividends" over $5 and over 10% of the share price trigger an options adjustment and I get putted $45 without the $25 dividend and when I turn around to sell the shares they're worth $20.

I don't think #3 will happen, but I suppose nothing is riskless.
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