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

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To: Bearcatbob who wrote (162166)1/8/2012 2:25:42 PM
From: Debt Free  Read Replies (2) of 206183
 
Bob & Michael

I hope that this is a start of more dialogue in this area as I know that I can use all of the help that I can. :-)

Michael

I like the idea of having rules in which to adhere too and that seems to make sense on near term options but not sure it makes sense if you have longer dated positions. I know that you have been successful, but it could be worthwhile to rethink the 200% rule for an option that doesn't expire for 60, 90 + days. My thinking is that unless there is gradual decay of the underlying stock, that it is probably an event that caused the spike in option prices and the associated premium.

Bob

I do look at the charts to try to see the big picture. I am also looking forward to doing a couple of spreads to get my feet wet in this area. A couple of stocks that I am considering is SHLD, RIMM, NOK and maybe even CCJ.

Doug
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