Options update for May 2...Bre-X, the proof is in the pudding (needs salt)
I screwed up somehow and sent a blank message, so I have 15 minutes to send a real one. Here goes:
All eyes will be on Bre-X on Monday. After reading the Toronto Star this morning, I marked my BXM down to $1.00, and I'm afraid that may be too optimistic. Anyway, tomorrow's opening should be something. I really hope for the sake of the TSE that the computers don't crash. Just remember that people never run out of memory like computers--they can always write things down when it gets busy. This pell-mell rush towards total automation is a real joke. The NYSE would never have to limit what types of orders or how close to the market they have to be that investors can enter.
BCE: I'll give Bell top billing today since it certainly put on a show Friday. I said on Thursday morning that Bell would trade at $70 if it were to perform as well as the banks. I just didn't know it would do it in one day. The Gordon client who bought $100,000 of insurance by buying 2500 May 60 puts on Thursday probably slept better Thursday night, but his policy will probably expire worthless. Volatility naturally drained out of the calls and slightly increased in the puts. It was a once in a decade move for Bell, but I didn't have any big position. Loss of opportunity is better than loss of capital. (20,21.5)
ABX: Barrick did virtually nothing all day after recovering from a lower opening. Good thing, too, because I was busier than a one-armed paper hanger in Bell. (32.5,30.5)
INCO: Inco finally continued its rally late in the day, and as I remember we were pretty busy in the options, but I just traded what the guys in the square told me to. Made money, though, so I was happy. (26.5,26)
Well, I'd better post this before I run out of time. I'll be back for Q&A in a minute.
Happy Trading.
Porter |
