Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (2435)	10/22/1997 10:02:00 PM
From: Lazlo Pierce	Read Replies (1) \| Respond to of 95453

Glen, I'd suggest one buy some in the money calls for Jan-Mar 98., of a driller you want to own the stock of. That way you pay very little premium, and get the action of the stock for 4 - 6 months for a fraction of the cost, and get to exercise down the road. Of course as this is a leverage thing, you'd lose more to the downside, but one can repair the position. Also to offset the cost, one can write some puts, and either collect the premium or get put the stock in case of a big pullback, thereby guaranteeing a lower price than present. Also FGII trading on the Philly Exch. They are known for outrageous premium on volatile stocks. There are lots of strategies to use, like Mike was saying. This is just one idea to think about. Good luck Dave