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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: kodiak_bull who wrote (43909)	5/11/2005 9:15:44 PM
From: Umunhum	Read Replies (1) of 206093

<I'm interested in the idea behind buying XLE Leaps at this juncture. I am faced with the question of why buy now?> Personally I want to buy '08 options. After reading Skrebowski's report energybulletin.net and several other books and articles I believe that we are going to be experiencing oil shortages by the end of '06 if not before then. However, I plan on placing a rather large bet and so I want the maximum amount of time as possible at the least amount of cost of course. If you have read and believe Pickens latest article, the world is about to have a big wake up call about oil depletion in Q4 of this year. Therefore all bets must be placed before then. We are right in the middle of shoulder season right now and so now is a good time to start deploying some capital. The '08 options come out at the end of this month so I am anxiously waiting for their arrival. As far as playing games by writing a spread with '06 options, I have no interest. I believe XLE will break $80 by '08 so why gamble with my upside in what I believe is going to be one of the greatest investment opportunities in my lifetime? I bought the Jan '07 XLE calls for $3.3 several months ago. If I were going to buy more today I would probably go with the $44 strike price. I will go up the ladder far enough so that I am paying less than 50 cents for each dollar of strike price. I want maximum leverage. I am also looking at a few coal stocks but the premiums on them are extremely high. Another potential windfall could come from a dollar crisis. How much longer can America consume greater than 80% of the world's savings?

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