noon EST update
Trades:
GM (General Motors) called away. option owner claims 25c div. Decent profit, buy/write December 2005
Sell AU Apr 60 puts to close (AngloGold Ashanti) small profit
Sell PAAS Mar 25 puts to close (Pan American Silver) modest profit
I know I wrote about a $500 price target on gold just yesterday, and here I am going flat. Why? First reason is that the gold price chart is right at its trendline support. Connect the dots on the six month chart of the recent lows and it is right there today. If nothing else, support brings in a few buyers. Second reason the time decay of options, time works against an option owner, nibbling a bit away every day there is no movement. Third reason is that many stocks are pinned to strike prices on options expiration. This again works against an option owner who wants more volatility. Fourth reason is fear and dread. Approximately 80% of all options expire worthless. Survival being #1 on my list, I want to stay out of that 80% shredder.
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