Strictly: Drilling II Message Board

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Strategies & Market Trends : Strictly: Drilling II

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To: gold$10k who wrote (6312)	1/10/2002 8:44:46 PM
From: Square_Dealings	Read Replies (1) of 36161

Well I think its too late for that since cheap calls were sold and they are way in the money now. According to my broker what happens is that some players buy calls on the futures (for example $3000 for 10 contracts, or 1000 oz.) and on expiration day they take delivery of the futures (on margin) since they are way up on the calls and it gold surely has established that its going up. Then the price of gold gaps down and trades down 5 dollars so the guy is now down $5000 and just turned a winning position into a losing one. So the smaller players can be forced out more easily after they take delivery of the futures. Hopefully this explains it, the call premiums are gone and it would take too much of a down draft to shake people out at this point. So the crooks can make more money with a smaller downdraft next week, unless of course they get screwed and nuclear bomb goes off or something and the price gaps up $15 -g-. I wouldnt want to be short gold right now other than for an intraday trade. Going much higher. M.

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