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

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To: Bearcatbob who wrote (175158)	12/22/2012 9:23:37 AM
From: CommanderCricket	3 Recommendations Read Replies (1) of 206347

BC, 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. Exactly - was disappointed when SD broke above $7 as the numbers and risk no longer worked for me. With it back near $6 again, it's perfect for 3% - 5% a month in return and there is in my opinion, less risk then in holding the shares out right. Another company to look at is WFT. I sold put option WFT the day before earnings hoping to participate in the IV crush the following day. Didn't work out and was assigned the shares. However, by playing defense and writing a 10/11 short strangle with covered calls, I've made back all the losses and have since sold the assigned WFT shares for a profit. Shitty management and poorly run but it isn't going anywhere either. Hoping for it to stay around $11 forever. Michael

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