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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: farkarooski who wrote (51173)5/9/2002 10:22:40 AM
From: Clappy  Read Replies (1) of 65232
 
wouldn't it be a huge leverage ???
you don't have to tie up all the money waiting for it to explode !!!


Time constraint is a traders enemy.

Small unhedged miners like DROOY and others provide almost the equivilent of an option contract with out the expiration to worry about.

The only expiration you have is whether or not they survive if the price of gold drops dramatically.

In my opinion, gold is volitile enough without having to add the additional worry of calls and puts... <g> <ng>

But to each is own.

Calls certainly have higher leverage.

If they get popular enough they might be good candidates to play a little of Voltaire's Beano on them. Nice strong uptrend. Lots of movement to keep the IV up there.
Sell covered calls on them each month...
Pocket the nice percentage rate...

Just the opinions and rambling thoughts of a jackass.

-Clapper
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