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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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To: onepath who wrote (71505)8/27/2011 5:23:56 PM
From: tyc:>2 Recommendations  Read Replies (1) of 78418
 
I am trying hard to accept the values shown on my brokerage statement, which is a mark-to-market valuation. On this basis some stocks and position are ridiculously cheap. Nevertheless we must accept what the market lords afford us.Hence m-to-m is valid, despite the cheapness of values so produced. It is up to all of us to take advantage of them

For example, I have a covered call position ; 10 Capstone September $3. (It could be much larger). My account says The PV of this pos.is $2,550,. If the stock is called away in 20 days, the proceeds of exercise net of commissions will be $2,957... a profit of $407 or 16% for only 20days. If the calls are not assigned, the minus $250 value of the short calls will be elimintated.. rinse and repeat... That $250 is almost 10% of the $2550 PV.. And I am confident that the calls would be replaced with a similar yielding position according to then m-to-m values.

I think this situation may be the result of high frequency trading. Who else would sell CS in volume down to $2.80?
Perhaps it's similarly silly to write covered calls.... but the yield per Short Term is compelling. , My account says that the time value of all my September short calls exceeds $2,000. K'ching whether calls are exercised or expire worthless
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