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Gold/Mining/Energy : Gold's Six Month Base Near Completion -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (51)	6/4/1998 5:16:00 PM
From: KAZHAK	Read Replies (1) \| Respond to of 94

Bill, Quite a bit of option activity today. To start with a Bankers Trust customer bought 1,000 july 70 calls in the XAU for 6.25. The firm accomodated the trade. That is a big bet, and it is also an opening trade. Then 500 june 80 XAU puts traded 7.375, and it looks like they were sold to close the position, though I am not sure. In NEM 2,500 June 25 calls traded .875 and 2,500 july 22.5 calls traded 2.75. It looks like the position was a roll from the june into the July calls. In the gold futures I noticed that over 1,500 of the August 295 calls traded and a very high(for gold) implied volatility of apx 16. The consistant theme is that there are buyers of July and August volatility in both Gold and gold stocks. Active call trading does not always mean the instrument is going up, but I think the odds favor that outcome. NEM and the XAU are sitting near their short-term lows, and technically it looks like they are very oversold. What do you make of this continued unusual option activity? Kazhak