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

To: ChanceIs who wrote (106605)	8/5/2008 5:51:54 PM
From: Kayaker	Read Replies (3) \| Respond to of 206358

[[ Volatility is up so it is a good time to sell options. Its obvious a great disappointment to me to contemplate selling $55s again. ]] Just my 2¢ I would avoid the temptation to short calls against shares at these beat down levels. Maybe CCs short term (August) but I would definitely avoid going out longer term with CCs. I think you'll end up in that familiar situation of stocks moving (sharply) up and you'll be stuck with the rising calls. I notice there is more talk here of doing CCs when stocks have been pounded down. Perhaps an attempt to avoid further pain. But there's not much talk of CCs when stocks are at new highs. Shorting puts looks reasonable here but no way I'd short calls against shares or other calls. That's the fear talking IMHO. We all (well, most of us) know that oil and NG will do spectacularly well over the next several years. I'd wait until new highs before shorting calls. Actually, I've quit doing CCs on oil stocks. Sometimes works for a few months, then the stocks go screaming up, up go the calls, and I find I would have been waaaaaaay better off just staying long the shares. As an aside, I moved from 100% cash to 50% cash today. Bought SU, CNQ, OIL, TLM, HGU, HOU, HNU, all on the TSX. Again, just my 2¢ (perhaps just 1¾¢)