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

To: Bearcatbob who wrote (106601)	8/5/2008 5:22:06 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206358

Good call on the XTO. Just quickly checking, I have some shares I bought too long ago to remember at $37ish. I sold the Aug $55s against them perhaps 6 months ago for a nice chunk of change. I thought that I had kissed them good-bye. Now they are quite far OTM. Volatility is up so it is a good time to sell options. Its obvious a great disappointment to me to contemplate selling $55s again. Not too much meat on the Sept $55s. I might go to January '09. I don't see the marginal worth of going all the way out to the Jan '10s as you have done. Then again you are selling against options while I am selling against equity. Your option will lose all of its time value some day so you perhaps have to hedge a little harder. I can just loose all the value of the equity, but time is a little more on my side.