gold rocket, page-19

P Hawk
Re your covered May 3.25 calls the LGL price should trade around $3.36 this morning suggesting the calls may be around 15-18 say 17 cents to close. Lots of premium still. If the stock goes to $3.50 by next Thurs week, you'll be looking at 26 cents on expiry. You could roll out now to around August and move up to say a $3.75 strike for similar premium or await expiry, full erosion and take chances that doesnt spike well above $3.50 and roll at that point. Depends on your view. With a covered position either strategy is fine. There is more certainty in the move from $3,00 to $3.50 now than what might transpire later, as LGL is ultimately a high risk company prone to production downgrades, problems with autoclaves and based in PNG and now Africa, not quite the safest of places. Experience has taught me the original strategy is often the best to follow, and not be too greedy.

That said I have stock plus $4.00 stock equivalent short puts, May #3.00 calls and short May and June and November puts which started life as short strangles and straddles taking advantage of exceptional high implied vol. I closed my short calls too early, so I've taken advantage of the ridiculous drop below $3.00 to put on a life changing trading position. My delta position gives a suggested $180,000 gain today on a 5 cent move in LGL. Mind you, yesterday I dropped $80k on MQG stock so must enjoy the losses as much as the gains.

My gut feel has been the shares should close around $3.50 Thursday week since that is where most of the original open interest lay, but the string of 20m-35m trades daily overwhelms the importance of local options to exhibit too much influence and we may just get a one day spike there. Here's hoping.