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

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To: kodiak_bull who wrote (44388)	5/26/2005 2:56:51 PM
From: Umunhum	Read Replies (1) of 206338

As an alternative financing vehicle to purchase the 07 calls, you might think of [-20 Jul 41 calls; +20 Jan 07 44 calls You're talking about doing spreads again. You would only get $3100 for the calls (20 July 41 @ 1.55) and the 20 Jan '07 calls would cost $8800, leaving a gap of $5700. The one thing I don't like about my trade is I'm taking the downside risk of 3000 shares and only getting the potential upside benefit of 2000 shares. The good thing about this trade is it just takes up margin buying power and I firmly believe the puts will expire worthless by September if not July. If they are not worthless by July, there's a good chance that I'll make a few bucks rolling them forward. these are interesting times as energy fights it out as to whether it's going to be bullish or bearish. You know where I stand on that issue. Shoulder season is officially over with Memorial Day weekend two days away.

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