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

To: Delfino R Zavala who wrote (169337)	6/6/2012 9:16:03 AM
From: CommanderCricket	Read Replies (2) \| Respond to of 206178

Delfino, Not sure I can give you a good answer but will try explain the reasoning. I sold CIE Sep 22.5 puts back when the share price was trading in the upper twenties and these positions are weighing down the portfolio. I was fortunate to sell the common shares though. As I believe in the company and want to take advantage of the sell off, I starting writing Jul 17.5 Puts and buying the common again. This increased the "delta" of the overall position and over-leveraged the portfolio (based on my own rules). In order to back off a little and hedge, I made the July trade selling Jul 25 calls (short strangle) to take advantage of the very high premiums in the calls (these are covered). The puts are naked and the calls are covered. News on Cameia-2 possible in late June.