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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: stockd who wrote (92328)	9/20/2007 2:06:31 PM
From: koan	Read Replies (3) \| Respond to of 313640

MT wts and K b wts are the safe way and both have about 3 to 1 leverage. But if one only has a small amount fo money to invest and wants to gamble on this gold move then the .45 K wts are the play, or the following concept I posted earlier. Read Replies (1) of 92331 Gold smoking: k wts--.45 -- 3 for 1 Here is my strategy. I am going to buy more of those K wts for .45. 3 to 1 with a strike of $15 until Dec 5th. KInross will move with gold!! Here is the reasoning. I am getting about 11 to 1 leverage. If one only buys a few of them they can leverage this huge move in gold cheaply. They may go bust, but the concept here is that one can lighten up on their other stocks. e.g. If one had $100,000 in gold/silver stocks they could sell 1/2 of them and buy just $5,000 worth of the K wts and have the same leverage. If gold falls all of those gold stocks will fall anyway. Or one cold sell 90% of everything and just buy $10,000 worth of K wts and sort of sit on the sidelines but be covered per se by controlling over $100,000 in Kinross in the money. If gold goes to $850 the K wts will stay well in the money and we shuld amke a little. If gold goes to $1,000 K will go over $30, IMO, (and we make $15,000 for every 3,000 wts) and if gold goes to $2,000 we make a ton---all for a very small bet and you got to avoid the risk of having a lot of money in the market. Good luck! And I already have a chit pot load of K wts I bought in th elow .20's. Report TOU Violation