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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Schnullie who wrote (85725)	6/4/2007 7:33:57 AM
From: ChanceIs	Respond to of 206183

>>>CIEN is listed as a stocks with the most overpriced calls.<<< Quite right. My bad. Overpriced vice high volume??? What to make of that. Overpriced I always take to be a bullish matter for the underlying. More demand than supply. Pretty simple. High volume??? The article's expression might be correct certainly not unreasonable. If I had to guess, I would say that many wanted to leverage CNE thinking it will rise sharply in the near future. Would many retail owners be selling covered calls indicating anticipated flat or dropping prices?? I doubt it. But that is just an educated guess. I have trouble ascribing too much meaning to options statistics, especially the put/call ratio. I often short a few puts to get a little longer but basically to enhance income or sometimes to buy back covering calls I wish I had never sold - if the underlying has run into the money. Right now I am building a position in Devon. I have maybe 1/8 of the shares I want - bought at just over $75 in May. I sold May $75 puts and sold May $80 covering calls. The calls and puts both expired worthless. I would have been very happy if the underlying movement resulted in assignment either way. If the price had dropped below $75 I would have more DVN at about $73. If it had run to $80, I would have both the put and call premium, and a very quick 7% capital gain. For June I sold $85 covering calls and $75 puts. So my sales of puts and calls are both bullish. Lots of pundits say 'Oh, the put to call ratio is high, investors are bearish on that stock.' My activities are not consistent with that conclusion - or any other.