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

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To: RevoltNapper6 who wrote (175147)	12/21/2012 9:37:22 PM
From: Bearcatbob	5 Recommendations Read Replies (3) of 206345

SD controversy and option profits: IMO one needs to look at SD in two different ways. The normal way is that of the buy and hold investor. For those people all of the troubles we see/hear are reasons not to go long the stock. The 2nd way is to look at SD from the Covered Call Short Put investor's view point. From the Short Put/Covered Call investor's view point all of the negatives become positives. First of all, SD is a dollar by dollar strike price option stock. Second of all the controversy around the stock gooses the option premiums. These premiums on a $6 stock provide nice percentage returns, When the share is above $6 - sell the puts. If it falls below and one gets assigned - sell the calls. Ultimately the share price is supported by the company's ownership of sutff - eg hydrocarbon energy resources. IMO when it runs above $7 - let it go. It has a habit of coming back. With SD back in the $6 range - I intend to resume playing the shares via Short Puts and if assigned - Covered Calls. Bob

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