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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (32028)	4/18/1999 7:20:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 116768

Dubious Wisdom Of Betting On End Of The World (Gold Options) << The true believers, however, have bought over 60,000 gold 390 calls. That represents over 6 million ounces - or 180 metric tonnes - of gold. If they are right, the NYMEX traders will have to find roughly the annual gold production of Brazil to fulfill their obligations under this one contract. To further put this in perspective, there are only about 4,000 gold "call" options outstanding for all the strike prices ($290 an ounce to $370 an ounce) for the whole month of October. >> << "The whole thing is insane. When this interest in the December 390 calls started last fall, they were trading for around 70 cents. Now they are at $30 bid for one contract. It is completely mispriced in terms of volatility. There is no relationship to reality at all. You can buy a $350 call for 70 cents." >> nypostonline.com A little Y2K gold option madness for a quiet Sunday morning.