<<your read on Bre-x options>>...
I don't actively trade them--but I do marvel at them. In a nutshell? I couldn't buy them, I wouldn't dare short them naked (even at 500% vol), which leaves covered writing, but heh, half the options in my portfolio (long/short) are valued at more than $3.60, so why not buy the stock? I'm long the stock and sold small May 9s (largely just so I could say I sold 500% vol)--the risk/reward is $0 v. approx. $10, in my opinion, and I like those odds. I am not advising you one way or the other, just giving my view of the parameters.
No options update today because outside of Bre-X and some banks, there was *no* activity worth mentioning today. Everyone is hanging fire waiting for Strathcona and the economic numbers from the States. It sure should be interesting when the Bre-X report is released. I wonder if "The Gang That Couldn't Trade Straight"(tm) (my humble monicker for the new TSE management), will get it together to halt BXM for dissemination, or press ahead with trading like on Bloody Easter Thursday.
Happy trading.
Porter |
