We Are Rockin This Morning

Not sure what happened yesterday. I guess some Fed Governor came out and said that he was concerned about the inflationary trends in the economy, so finally it is off to the races today with gold up and NEM and my options performing well.

My time horizon is closing in, so I will discuss a difficult choice. Assuming that the position continues to perform well, I will have in the money options on/before September 15 (expiration date). So I will either have to cash out the trade and re-purchase any investment in gold at a later time or I can just roll over my options to October or November expiration - with the problem of course being that there might be a good portion of time and implied volatility premium in the new ones.

I haven't explained the tools yet for valuing options, but hopefully by this weekend I will give a little breakdown on what I look for and what "time" and "implied volatility" premium mean. Right now, I think it is enough to say that if I roll over my options, I am afraid that I am going to overpay for the new ones and be more susceptible to a drop in the stock price.

This is important as there are extraneous events after the options expiration - mainly the Fed Meeting on 9/20. This could be very negative as Fed could announce desire to continue rate increases until inflation is under control. It could also be positive if Fed announces plans to slow rate cuts. Regardless - I consider that there will be significant event risk there and might just sit it out in cash to see how 1) I evaluate the comments and 2) market evaluates comments.

In meantime - here is an update on the NEM position -I am loving it - let's hope this run continues:


Best regards,

BG