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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (43306)	11/30/2008 10:48:14 PM
From: Cogito Ergo Sum	Respond to of 217882

Quite a bit of posting here on the topic.. short term pain , long term ecstasy, Particularly The Falcon :o) Subject 32953

To: Seeker of Truth who wrote (43306)	12/1/2008 2:03:46 AM
From: energyplay	Respond to of 217882

Selling puts or calls means you are SHORT volatility. If you sold a put at 500, gold could go up to 1000, but bouncing 150 dollars every day. The higher vol could cause the price of your put to go up, making it harder to buy back. Especially for a long term put. Consider keeping the positions small enough so that if gold drops, and you have to buy, you will still feel good about selling puts on gold the next month.

To: Seeker of Truth who wrote (43306)	12/1/2008 6:02:35 PM
From: TobagoJack	Respond to of 217882

hello seeker, (i) gold is more useless than not (ii) gold has been and will continue to be volatile (iii) physical gold is difficult to come by for buy (iv) plenty of paper gold about to cap the price of physical gold, for now, for some time (v) gold can certainly go to 500 (vi) unlike stocks and bonds, gold cannot go to 80 (vii) galaxy-wide monetization play is a sure play (viii) timing uncertain (ix) i do not recommend selling distant gld puts for when the monetization play is full on and apparent, one wants to have gold, and not be short gold puts, and one wants to be able to then short covered gld calls and eventually sell gld itself (x) if must short gld puts, short near term ones, until allocation order to gld is filled bernanke just reminded us bloomberg.com "Bernanke Says Fed May Buy Treasuries to Aid Economy" ... putting it all together, it means THEY are in effect: (i) recapitalizing banks by allowing them to (a) act as conduit to false wealth, and (b) getting nominal profit to make up the numbers, by (ii) being able to borrow from fed at soon-to-be 0% (iii) buy long t-bills at 3.5% (iv) have the fed bid up said t-bills (v) earn interest from fed with spare change swept into fed on nightly basis, and (vi) other nasty smelly and unspeakably evil deeds drempt up by ethically challenged and systemically corrupt system peopled by wastrels look at this pretty picture 4.bp.blogspot.com cheers, tj