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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (2990)	1/10/1999 4:41:00 PM
From: Zardoz	Read Replies (2) \| Respond to of 82239

>"I thought you owned ABX and we looking for 32? If ABX gets to 32 where do you see the XAU? Higher or lower than it is now? >>RE:"I agree Gold and gold stocks have a lot lower to go. I wouldn't own them.".... Jim I own 1000 shares of ABX against a 10 contract PUT option that is at $32.5 strike {CDN money} which expires in Jan 16/99. The reason I bought the 1000 shares is to lock in a position around the $32.5 strike. Do I think ABX and the XAU is over valued, sure do. Do I think that trends can run past a proven position YES. So if the price of ABX goes above $32.80 I make back ALL my money and more. But if it doesn't I loose only $330 on the total position. This is because of when, and where I bought the option. But rest asured, I still believe that the XAU, POG, and ABX are going lower. IF the XAU falls apart, I can execute my options. So in essence I own ZERO ABX, as the Put option offsets it. Market risk: $330/{32.20*1000) = 1.02% PS: In DEC I bought ABX and executed the options because it was better then the sale of the PUT contracts. That contract was cash positive. To few out there don't understand what hedging is.