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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (16196)	7/14/2006 5:35:24 PM
From: SwampDogg	Read Replies (1) \| Respond to of 78416

Don't forget that you need 3 wts to buy 1 share at $15 (ie you need the stock to go to $18 by expiration to make anything. If it doesn't get to $15 you go to zero. If it goes to $16 (big move in the stock) you go to $0.33 at expiration. Not a very good bet IMO. Buy a junior with good prospects for leverage If gold goes up $100 it probably will do as well as the wts if not better and if gold goes down $200 at least the time value will not kill you. Look how those wts did over the past couple of months stockcharts.com Nice to sit at $0.52 with no volume waiting for them to go to zip Or how about $0.15 last year with an extra year of time value They will do well if gold flies but very risky. Just think the gold index can rally 25% from here and the wts may still go to zero.

To: koan who wrote (16196)	7/14/2006 5:59:48 PM
From: SwampDogg	Read Replies (1) \| Respond to of 78416

The leverage is totally dependent on where the stock ends up in the next year and is certainly not what you say If the stock gets to $25 by 12/07 The return on the stock would be 96.80% The return on the wts would be 270% Leverage is almost 3:1 If the stock gets to $20 by 12/07 The return on the stock would be 57.48% The return on the wts would be 85.00% If the stock gets to $18.00 by 12/07 The return on the stock would be 41.73% The return on the wts would be 11.11% If the stock gets to $15 by 12/07 The return on the stock would be 18.11% The wts would be worthless (loss of 100%) Also take into account what would happen if there is merger. You may be SOL. The inherent leverge of the wts is 3:1 but only when the stock gets above strike and may not track well as you have $0.90 of time value to work off.