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Gold/Mining/Energy : Gold Price Monitor

GDXJ 96.90

+0.9%

Nov 18 4:00 PM EST

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To: Lightning who wrote (44315)	10/29/1999 2:41:00 PM
From: Casaubon	Read Replies (2) of 116762

not true. I sold against some stock I own, and I think that stock is going to go up. If I thought it was going to go down, I would sell the stock. I still earn money because the calls have a time decay premium. You have to sell something to make money. I like selling risk beyond what I consider reasonable. If someone else wants to buy that risk, I won't tell them not to. If my stock doubles in seven months time, I will only get the first 20% appreciation. The nice thing is I get the money upfront to earn interest on that. This is a covered call. It is a conservative way to generate fairly reliable returns, if the underlying company is pretty good. Some gold hedgers were effectively selling covered calls, and some were essentially selling naked calls. The naked guys got caught with their pants down <ggg>

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