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Gold/Mining/Energy : Northgate Exploration Limited - TSX: NGX; AMEX: NXG -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (56)	8/25/2004 10:38:07 AM
From: tyc:>	Read Replies (1) \| Respond to of 148

Like you I know little about options. However I'm curious to know how this guy knows the In-the-money options represent "naked shorts". And why we should believe him, or even find his opinion interesting. It seems to me that the price of gold is established in the "paper gold" market. The hoard of physical gold keeps growing offset only by industrial usage of one sort or another. The holders of the gold are not speculators. They therefore need to hedge their holdings. What better way to do it than in the paper-gold market either by selling options or selling futures contracts ? Would a speculator wanting to benefit from a drop in the price of gold really short-sell an option ? I don't think so.