spp, page-6

Interesting hedgeing strategy ... $2m US spent on collars, keeps loads of upside with Puts set at $52 on oil and $8 on gas so still extremely profitable. Would have perhaps prefered a "zero-cost" strategy ... calls set at $80 ( instead of $90 ) and $17.50 ( instead of $20 ) would have possibly achieved that .... Mgmt closer to the ground than me and obviously want to capture most of any further spike is US energy prices. Hedges kick in for 2Yrs from April next year ... interesting they have kept all the price risk over the US winter .... and Wells Fargo were obviously comfortable with that strategy ...
VERY IMPORTANT last few days for AMU ... I'm sticking with this co. for the distance !!!