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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Lightning who wrote (44315)	10/29/1999 2:37:00 PM
From: Bobby Yellin	Respond to of 116762

the gold market is a different type of animal..the gold producers have had the central bankers threatening to totally demonitize gold and have been competing with derivatives as insurance.. some producers probably were just hoping at best for gold to do nothing until investors started moving into gold as an investment.. I totally disagree with you.. they probably just thought the options would expire worthless ..and they could still profit as long as they didn't write too many and still survive.. ps just look the way the government statistics get stilted so as not to reflect underlying inflation etc

To: Lightning who wrote (44315)	10/29/1999 2:41:00 PM
From: Casaubon	Read Replies (2) \| Respond to of 116762

not true. I sold against some stock I own, and I think that stock is going to go up. If I thought it was going to go down, I would sell the stock. I still earn money because the calls have a time decay premium. You have to sell something to make money. I like selling risk beyond what I consider reasonable. If someone else wants to buy that risk, I won't tell them not to. If my stock doubles in seven months time, I will only get the first 20% appreciation. The nice thing is I get the money upfront to earn interest on that. This is a covered call. It is a conservative way to generate fairly reliable returns, if the underlying company is pretty good. Some gold hedgers were effectively selling covered calls, and some were essentially selling naked calls. The naked guys got caught with their pants down <ggg>