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Strategies & Market Trends : cash flow investing for retirement

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To: tyc:> who wrote (58)	10/5/2011 8:07:09 PM
From: tyc:>	of 94

I heard several pundits agree that today's market was just a "bear market rally". I suppose that means that shorts should stay short. Yeah ! I wonder how high the market must go before they scramble for cover, For my part, I have $52 covered calls of Goldcorp expiring in just 16 days, Of course I'm losing money on the position.. nothing new or alarming there. I expect the calls to expire worthless. It is surprising that the market is still bidding C$.46 for them. As I am still a little short of my October quota I shall sell 3 more tomorrow. I had intended to delta-hedge them. Because they are so far out-of-the-money their delta is only 19%., so only (3*19) 57 shares are required to provide the safety of a hedge for now. However my present fully-covered position has lots of surplus delta, so tomorrow I shall buy no shares.... but I shall hereafter monitor the delta of the position daily, ready to buy more shares if needed "Put money in thy purse, Roderigo", says the bard.

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