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Gold/Mining/Energy : CDN. MOMO PUPPIES -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (10148)	10/3/1999 3:37:00 PM
From: SwampDogg	Read Replies (2) \| Respond to of 36688

lol...I think that I should start calling you "gramps" or "old timer" I am not as much of a silver bull as gold...I think that the Au/Ag ratio will stretch in gold's favour over the next decade.

To: koan who wrote (10148)	10/3/1999 3:56:00 PM
From: koan	Respond to of 36688

MOMO and a free lunch: There is one little trick (my favorite - and where I have made the most money)with a real life example right now: Pan American Silver has WTS (PHPI)good until feb 2001 and they are 1 for 1. The exercise price is 9. The stock is at $11 ( 2 bucks in the money) and the wts are at $3.40. Now, lets say you buy 1,000 shares of stock for $11,000 and you buy 1,000 wts which will cost you $3,400. Now, on the upside the wts should pretty much track the stock 1 for 1 (i.e. the stock goes up a $1 the wts will go up $1 - giving you a 3.2 to 1 leverage i.e. you could have bought 3200 wts for your $11,000) AND if the stock goes down to say $7.00, whereby you would have lost $4,000 - the wts will only go down to about $1.50 to 1.75 because they retain time value and leverage value. Pretty cool huh? 3.2 leverage on the upside and over 2 to 1 reduction in losses on the downside. this only work with wts that have enough time value - I really like 2 or more years. PS wts can also be very dangerous, so one needs to thoroughly understand them. Anyone feel free to comment on this if you think I have got something wrong.PPS I am only putting this in because I thought it might help some of you make some money.