DhuyThought I'd mention I'm still in LGL plus now Newcrest, in a...

Dhuy
Thought I'd mention I'm still in LGL plus now Newcrest, in a modest way. I'm still really waiting for the more seasonally friendly period for gold and resources generally from November but option premiums available keep sucking me in.

I thought we'd seen the low in LGL around $2.25 and rolled down from $3.00 to $2.50 puts, and once again find myself underwater, and was very tempted to go mega long Feb $2.00 calls last week which today at least would have looked good.
I guess the technical guy who picked $1.75 should be congratulated! Having once bought LGL at a 55 cent low I know how low high cost gold producers can go if the gold price fails.

its a measure of the 3 month premiums available and the vol that having looked stupid on Thursday, my Nov $2.50 LGL puts are once again instrinsically profitable.

LGL is a relatively high cost unhedged producer, so if gold is to make another run at above $1000 or even higher, then it is the play at the moment.

What is your call on gold over the next five months?


Oldtimer2