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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (7722)	9/30/2004 8:56:10 PM
From: Taikun	Respond to of 11633

Interesting approach. PMT should benefit from the high NG prices-they're just pennies under what they were on ex day and they're 100% NG. I have some ERF OTM April Calls that I probably should have unloaded already but they've doubled. The thing is I've noticed about the ERF calls is that the premium is limited on OTM calls by investors do the buy-write scenario. For example, the April 05 ERF $35 Calls I bought for 0.15 ea in August, they traded up to 0.45 this week but I couldn't get an execution at 0.45, in fact most of the trades took place between 0.30 and 0.35, below what ivolatility listed as the price when ERF was around $33. I think if there are a bunch of limit orders at 0.45 and only one buyer at 0.45, you have to get lucky to get assigned. Until this recent runup in ERF there was a pretty good game picking ERF's peaks ($30 ish) and troughs but now that investors appear to be willing to accept a yield of <10% we're in new territory. I appeciate your insight though.