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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (287)	12/23/1997 12:41:00 AM
From: Ross	Respond to of 3558

Robert: You said: "I am not a strong believer in gold in the short term" I do not watch gold very close.. So really have no opinion. And this may fly in the face of going "long" or "short" ABX. But I feel the chart of ABX will tell me what to do independently of gold.. You also said: "Did you do the Arithmetic on whether it is better to buy at the money puts on a shorter time period (90 days), and then possibly sell after 45 days and buy more at the money puts with a similar time frame (90 days)" My way of using options is very simple.. I do not like premium so I buy deep in the money options to avoid this. I also like to have some time.. With April 20's you pay approx. $.75 premium. Even Jan $17.50's cost $.50 and these are "out of the money". The downside is I could be getting interest on the difference. For me it is a small price to pay for the time and lack of premium.. I do like ABX options because they seem reasonable for the time value. With the April 20's I loose approx. $.25(minus) cents a month. Not bad for the upside potential. Most of my analysis goes into the technical outlook of the stock So I like to keep my option choices simple. Happy Holidays to you also! Ross