hedgies giving tree a good shake, page-12

As SydneyGuy points out, Call prices are very expensive at moment. For those of you with large holdings a good strategy may be to write a collar sell calls @ say $34.50 and buy puts for downside protection at say $31.50.. This is what I've done today for October expiry and I have change in my pocket.

Of course it could go against me if there is sig upside...

Another strategy for downside protection if you don't like the potential of being called at 34.50 if the POG surges early is to write a shortdated put (sep expiry) and use the proceeds to purchase a longer dated put at the same price or above (Oct expiry) for pretty minimal outlay.

just some food for thought for those of you either considering capturing a falling knife or those sitting on a large position that want a little protection...

I'm confident gold will be resurgent but what happens between now and then is anyones guess.

doc