Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (20665)	10/25/2002 12:08:27 PM
From: Casaubon	Read Replies (1) \| Respond to of 36161

the idea of a hedged play is to time average a position. Simply closing the short end of the hedge at a single point in time would, IMO, be a big mistake. If the position warrants unwinding, it should be be done over the course of the agreed upon hedge. They should, and are, reduce exposure to such forward hedges going foward. Let the old hedges run their course. Time is the friend of hedged positions. As far as investments go, if one wishes full exposure to any near term POG moves, simply find unhedged producers. Unwinding a forward hedge position at a single point in time is a mistake.