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

To: CommanderCricket who wrote (93434)	11/12/2007 3:49:18 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206093

>>>I have to agree it wasn't the brightest move buying back the Nov. CNQ calls.<<< I wasn't trying to brow beat you. I just couldn't see your rationale. I made the mistake earlier in the week about rolling up 10 DVN $85 call contracts to Nov $90s. Cost about $2 to do it. I had shorted the $90 puts so they worked against each other, but I was sure that we would hit expiry over $90, and I feared the loss on the (naked) calls. Ooooopppps. I am a little disappointed that at this instant, the bid on the CNQ Dec $80s is only $2.55. I was figuring to smack them for at least $3.50. Still a good chance of that. We will bounce and the volatility component won't wear down any time soon. Still getting $2.55 when the underlying is $4.50 OTM isn't bas at all. But like I said, I am frightened. Selling those LEAPs with a Delta around 0.5 gives quite a cushion and an opportunity to tear a buck or two off if CNQ falls another $3 or $4 from here. It will bounce, but when? That $12.20 on the Jan '09 $80s is looking pretty sweet. The volatility will settle out within two months and even if it doesn't, there will be an opportunity to buy them back for a least $1 gain on a downswing.