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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Frank who wrote (71091)8/17/2000 11:00:17 AM
From: ItsAllCyclical  Read Replies (1) of 95453
 
Frank, if you truely believe in Keg you should consider the Jan 7.5 options. I recently loaded up on long term options on KEG and PGO and sold my shares on this recent bounce freeing up capital. It's obviously more risky, but I think one more run on the OSX is inevitable before Jan. I see KEG trading between 12 and 18 by mid Jan.

Their currently selling for 2 3/8's. Bought another 60 this morning. At 12 their worth 4 1/2 by expiration. If 15 is seen before Jan then they'll be worth 7 1/2+.

Since KEG has been trading sideways for so long I feel comfortable with this strategy.

The one downside is that KEG somehow misses and the stock makes new lows. I think though it would recover to at least 10+ by Jan, but you'd be sitting on dead money. I personally don't believe that even missed expectations would send them to new lows as the focus is more on the future.

If you do go the options route don't get greedy. I'd buy in-the-money calls and I'd give yourself plenty of time. Buying one/two months options is like playing Russian roulette. The Oct 7.5's are cheaper, but I think the Jan's are worth the extra money.

Bought quite a bit of NSS this morning too. Will buy MAVK is it comes back to 25.
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