selling explained, page-12

My first posting on hot copper having retired recently with a reasonable portfolio.

I was the main open interest seller of $4.00 puts as I sold my Lihir shares average $4.25 as gold headed above $1000. Its obvious;ly overshot my expectations onthe downside for a modest retracement in gold. So I am again a long term investor in the stock! The positive news is that with 20-40 million shares now trading daily, the stock is slowing grinding a recovery having fallen sharply on much lower daily volume, which suggests to me other major investors see value at these levels and are content to absorb Fidelity selling. I have now added synthetic upside exposures reasoning a) global inflation is likely to gain credence if world growth continues unabated which is positive for gold or b) gold should have another slight run as US dollar has another bout of weakness, c)LGL is underpriced and should bounce strongly once Fidelity stops selling or buyers take them on and d) my technical chart suggests its time for a gap up bounce towards $3.50.