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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (66699)	8/14/2009 11:10:52 AM
From: Tommaso	Read Replies (1) \| Respond to of 78421

The only options I have had much luck with have been the furthest out LEAPS I could buy, whether calls or puts. That gives you the best chance of being right some time during that period, and also opens the possibility for long terms capital gains tax treatment, if you hold a year. But if you get lucky you can always take profits early and maybe buy back in at a lower price. Options are a very small part of my investments now. I would go for 2011 GDX LEAPS if they are available. Let me see. XACAX is a call, strike 50, expiration January 2011, selling at about 4.50. Should GDX double by expiration, the call would be worth 6.66 times what it is now. In addition, the time value of the call would stay high for a year and could increase. If GDX only rises 36% by expiration, you would break even. If you want an even more distant horizon and leverage, there's the fund PMPIX that is 150% of a gold index. That's where I have a lot of money.